Reviewing XBP Europe (NASDAQ:XBP) and Repay (NASDAQ:RPAY)

Repay (NASDAQ:RPAY) and XBP Europe (NASDAQ:XBP) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Analyst Ratings

This is a breakdown of current ratings and price targets for Repay and XBP Europe, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repay	0	7	6	0	2.46
XBP Europe	0	0	0	0	N/A

Repay currently has a consensus target price of $10.50, indicating a potential upside of 6.82%. Given Repay’s higher possible upside, research analysts clearly believe Repay is more favorable than XBP Europe.

Profitability

This table compares Repay and XBP Europe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Repay	-29.49%	7.74%	4.33%
XBP Europe	N/A	N/A	-19.05%

Volatility & Risk

Repay has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, XBP Europe has a beta of -0.44, meaning that its stock price is 144% less volatile than the S&P 500.

Valuation and Earnings

This table compares Repay and XBP Europe’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repay	$296.63 million	3.37	-$110.49 million	($0.98)	-10.03
XBP Europe	$166.57 million	0.33	-$11.05 million	N/A	N/A

XBP Europe has lower revenue, but higher earnings than Repay.

Institutional & Insider Ownership

82.7% of Repay shares are owned by institutional investors. Comparatively, 15.7% of XBP Europe shares are owned by institutional investors. 11.0% of Repay shares are owned by company insiders. Comparatively, 82.5% of XBP Europe shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Repay beats XBP Europe on 8 of the 11 factors compared between the two stocks.

About Repay

Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets in the United States. It operates through two segments: Consumer Payments and Business Payments. The company's payment processing solutions enable consumers and businesses to make payments using electronic payment methods. It also offers a range of solutions relating to electronic payment methods, including credit and debit card processing, automated clearing house (ACH) processing, e-cash, and digital wallet services; virtual credit card processing, enhanced ACH processing, instant funding, clearing and settlement, and communication solutions; and proprietary payment channels that include Web-based, virtual terminal, online client portal, mobile application, text-to-pay, interactive voice response, and point of sale services. It serves customers primarily operating in the personal loans, automotive loans, receivables management, and business-to-business verticals through direct sales representatives and software integration partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia.

About XBP Europe

XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.