Paysafe (NYSE:PSFE) and Gravity (NASDAQ:GRVY) Financial Analysis

Paysafe (NYSE:PSFEGet Rating) and Gravity (NASDAQ:GRVYGet Rating) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

48.5% of Paysafe shares are held by institutional investors. Comparatively, 8.0% of Gravity shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Paysafe and Gravity’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paysafe $1.49 billion 0.72 -$110.95 million N/A N/A
Gravity $361.55 million 0.91 $59.35 million $7.23 6.55

Gravity has lower revenue, but higher earnings than Paysafe.

Analyst Recommendations

This is a summary of current recommendations and price targets for Paysafe and Gravity, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paysafe 2 4 2 0 2.00
Gravity 0 0 0 0 N/A

Paysafe currently has a consensus price target of $3.69, indicating a potential upside of 150.85%. Given Paysafe’s higher possible upside, research analysts plainly believe Paysafe is more favorable than Gravity.

Volatility & Risk

Paysafe has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, Gravity has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.

Profitability

This table compares Paysafe and Gravity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paysafe -126.35% 0.79% 0.23%
Gravity 14.90% 23.29% 17.71%

About Paysafe

(Get Rating)

Paysafe Limited provides digital commerce solutions to online businesses, small and medium-sized business merchants, and consumers through its Paysafe Network worldwide. The company operates in two segments, US Acquiring and Digital Commerce. It provides PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers, including merchant acquiring, transaction processing, online solutions, fraud and risk management tools, data and analytics, and point of sale systems and merchant financing solutions under the Paysafe and Petroleum Card Services brands. The company also offers digital wallet solutions under the Skrill and NETELLER brands; and pay-by-bank solution under the Rapid Transfer brand. In addition, it provides eCash solutions, such as Paysafecash, a bill payment eCash solution that allow users to shop online and then pay offline in cash to finalize the transaction; paysafecard, a prepaid eCash solution; and paysafecard prepaid Mastercard that can be linked to a digital paysafecard account and used to make purchases. Further, it offers integrated and ecommerce solutions for online merchants and software-integrated merchants within integrated payment capabilities; online toolkit that allows merchants and integrated software vendor to build and scale their online commerce presence; and turn-key payments gateway solution that offers critical connectivity between merchant online sites and payment acceptance and transaction processing providers. Additionally, the company manages and provides various connections to card processing networks, acquiring banks, and transaction processors; and offers gateway connectivity,? shopping cart, tokenization and encryption, fraud and risk management, and support to payment alternatives, as well as provides integrations into eCommerce platforms and multiple alternative payment methods. Paysafe Limited is based in London, the United Kingdom.

About Gravity

(Get Rating)

Gravity Co., Ltd. develops and publishes online and mobile games in South Korea, Taiwan, Thailand, and Japan. The company offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Prequel II. Its mobile games portfolio includes Ragnarok M: Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; and Paladog Tactics. The company also provides console games, such as Ragnarok DS for Nintendo DS; Ragnarok: The Princess of Light and Darkness for PlayStation Portable; Ragnarok Odyssey for PlayStation Vita; Double Dragon II for Xbox 360; Ragnarok Odyssey Ace for PlayStation Vita and PlayStation 3; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Pororo: The Little Penguin; and markets dolls, stationery, food, and other character-based merchandises, as well as game manuals, monthly magazines, and other publications. Further, the company provides system development and maintenance services, as well as system integration services to third parties. As of December 31, 2021, it owned 156 registered domain names. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.

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