Paymentus (NYSE:PAY) versus Radware (NASDAQ:RDWR) Financial Analysis

Paymentus (NYSE:PAY) and Radware (NASDAQ:RDWR) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for Paymentus and Radware, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paymentus	0	6	2	2	2.60
Radware	0	1	1	0	2.50

Paymentus presently has a consensus target price of $20.19, indicating a potential upside of 1.50%. Radware has a consensus target price of $23.00, indicating a potential upside of 1.68%. Given Radware’s higher possible upside, analysts clearly believe Radware is more favorable than Paymentus.

Valuation and Earnings

This table compares Paymentus and Radware”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paymentus	$614.49 million	4.03	$22.32 million	$0.23	86.48
Radware	$261.29 million	3.64	-$21.59 million	($0.46)	-49.17

Paymentus has higher revenue and earnings than Radware. Radware is trading at a lower price-to-earnings ratio than Paymentus, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Paymentus has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Radware has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

12.6% of Paymentus shares are owned by institutional investors. Comparatively, 73.1% of Radware shares are owned by institutional investors. 87.8% of Paymentus shares are owned by company insiders. Comparatively, 21.6% of Radware shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Paymentus and Radware’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paymentus	4.63%	9.33%	7.96%
Radware	-4.73%	-0.72%	-0.40%

Summary

Paymentus beats Radware on 13 of the 15 factors compared between the two stocks.

About Paymentus

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.

About Radware

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers worldwide. The company operates in two segments, Radware’s Core Business and The Hawks’ Business. It offers DefensePro provides automated DDoS protection; Radware Kubernetes, a web application firewall solution; and Cyber Controller, a unified solution for management, configuration, and attack lifecycle. The company also provides Alteon, an application delivery and security solution that manages application traffic across cloud and data center locations for optimizing availability and performance; and LinkProof NG, a multi-homing and enterprise gateway solution. In addition, it offers ERT Security Updates Subscription that provides protection from network elements, hosts, and applications; ERT Active Attackers Feed, a threat intelligence feed to protect against DDoS threats; ERT Protection Packages; Alteon Global Elastic License, a purchasing and deployment subscription; MSSP Portal, a DDoS detection and mitigation service portal; Location-based Mitigation that enables network traffic based on the geolocation mapping of IP subnets; and Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud. Further, the company provides Cloud Web DDoS Protection, Cloud WAF Service, Bot Manager, Cloud-Native Protector, and Cloud Application Protection Services, as well as technical support, professional, managed, and training and certification services. It sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. The company was founded in 1996 and is headquartered in Tel Aviv, Israel.