Contrasting Repay (NASDAQ:RPAY) & Gravity (NASDAQ:GRVY)

Gravity (NASDAQ:GRVYGet Free Report) and Repay (NASDAQ:RPAYGet Free Report) are both small-cap communication services companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Volatility and Risk

Gravity has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Repay has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Gravity and Repay, as provided by MarketBeat.

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

Repay has a consensus target price of $10.25, indicating a potential downside of 3.03%. Given Repay’s higher probable upside, analysts clearly believe Repay is more favorable than Gravity.

Earnings & Valuation

This table compares Gravity and Repay’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gravity $756.10 billion 0.00 $58.14 million $15.56 4.67
Repay $296.63 million 3.63 -$110.49 million ($1.22) -8.66

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

Profitability

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

Net Margins Return on Equity Return on Assets
Gravity 19.02% 37.33% 28.39%
Repay -37.25% 7.49% 4.24%

Insider & Institutional Ownership

7.8% of Gravity shares are held by institutional investors. Comparatively, 75.4% of Repay shares are held by institutional investors. 19.2% of Repay shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Gravity beats Repay on 7 of the 13 factors compared between the two stocks.

About Gravity

(Get Free Report)

Gravity Co., Ltd. develops and publishes online and mobile games in South Korea, Taiwan, Thailand, and the United States. 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 Haunted House and 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. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.

About Repay

(Get Free Report)

Repay Holdings Corporation, payments technology company, provides integrated payment processing solutions to industry-oriented markets. It operates in 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, virtual credit card processing, automated clearing house (ACH) processing, enhanced ACH processing, and instant funding, clearing and settlement, e-cash, and digital wallet through its proprietary payment channels that include Web-based, mobile application, text-to-pay, interactive voice response, and point of sale. The company 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. Repay Holdings Corporation was founded in 2006 and is headquartered in Atlanta, Georgia.

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