Contrasting PaySign (NASDAQ:PAYS) & Nielsen (NASDAQ:NLSN)

PaySign (NASDAQ:PAYS) and Nielsen (NYSE:NLSN) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for PaySign and Nielsen, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PaySign 0 1 3 0 2.75
Nielsen 0 5 6 0 2.55

PaySign currently has a consensus target price of $11.37, suggesting a potential downside of 28.96%. Nielsen has a consensus target price of $27.73, suggesting a potential upside of 18.44%. Given Nielsen’s higher possible upside, analysts plainly believe Nielsen is more favorable than PaySign.

Dividends

Nielsen pays an annual dividend of $1.40 per share and has a dividend yield of 6.0%. PaySign does not pay a dividend. Nielsen pays out 80.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Nielsen has raised its dividend for 5 consecutive years.

Earnings & Valuation

This table compares PaySign and Nielsen’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PaySign $23.42 million 32.27 $2.57 million $0.09 177.78
Nielsen $6.52 billion 1.28 -$712.00 million $1.73 13.53

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

Institutional and Insider Ownership

11.4% of PaySign shares are owned by institutional investors. Comparatively, 95.4% of Nielsen shares are owned by institutional investors. 38.6% of PaySign shares are owned by insiders. Comparatively, 0.3% of Nielsen shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares PaySign and Nielsen’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PaySign 11.72% 66.72% 15.11%
Nielsen -11.46% 15.52% 3.50%

Volatility and Risk

PaySign has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Nielsen has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Summary

PaySign beats Nielsen on 9 of the 17 factors compared between the two stocks.

About PaySign

PaySign, Inc. provides prepaid card programs and processing services under the PaySign brand to corporations, government agencies, universities, and other organizations. The company offers various services, including transaction processing, cardholder enrollment, value loading, cardholder account management, reporting, and customer service through PaySign, a proprietary card-processing platform. It also develops prepaid card products for healthcare reimbursement payments, pharmaceutical assistance, donor compensation, corporate and incentive rewards, and expense reimbursement cards; and payroll or general purpose reloadable cards, as well as gift or incentive cards. In addition, the company offers Buy and Bill programs for patients to purchase directly from physician's office or through an infusion center for physician administered therapies; payment solution for source plasma collection centers; and PaySign Premier, a demand deposit account debit card, as well as customer service center and PaySign Communications Suite services. Its principal target markets for processing services comprise prepaid card issuers, retail and private-label issuers, small third-party processors, and small and mid-size financial institutions in the United States and internationally. The company was formerly known as 3PEA International, Inc. and changed its name to PaySign, Inc. in April 2019. PaySign, Inc. was incorporated in 1995 and is based in Henderson, Nevada.

About Nielsen

Nielsen Holdings plc, together with its subsidiaries, operates as a measurement and data analytics company. It operates in two segments, Buy and Watch. The Buy segment provides retail transactional measurement data, consumer behavior information, and analytics primarily to businesses in the consumer packaged goods industry. This segment offers data on retail measurement services, such as market share, competitive sales volumes, and insights into activities, such as distribution, pricing, merchandising, and promotion; consumer panel measurement, which offers insight into shopper behavior comprising trial and repeat purchase for new products, brand or retailer loyalty, and customer segmentation; and consumer intelligence and analytical services that help clients in taking business decisions in product development and marketing cycles. The Watch segment provides viewership and listening data, and analytics principally to the media and advertising industries covering television, radio, print, online, digital, mobile viewing, and listening platforms. This segment offers television audience measurement services; audio audience measurement services; digital audience measurement services, such as digital media and market research, audience analytics, and social media measurement; mobile measurement services comprising measurement and consumer research for telecom and media companies; and total audience measurement services. Nielsen Holdings plc provides media and marketing information, analytics, and manufacturer and retailer expertise about what and where consumers buy, read, watch, and listen. The company was formerly known as Nielsen N.V. and changed its name to Nielsen Holdings plc in August 2015. Nielsen Holdings plc was founded in 1923 and is headquartered in New York, New York.

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