Critical Comparison: SHF (NASDAQ:SHFS) and Repay (NASDAQ:RPAY)

Repay (NASDAQ:RPAY – Get Free Report) and SHF (NASDAQ:SHFS – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Risk and Volatility

Repay has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500. Comparatively, SHF has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Repay and SHF, as reported by MarketBeat.com.

Repay currently has a consensus price target of $5.25, indicating a potential upside of 23.09%. Given Repay’s stronger consensus rating and higher probable upside, equities analysts clearly believe Repay is more favorable than SHF.

Institutional & Insider Ownership

82.7% of Repay shares are held by institutional investors. Comparatively, 29.2% of SHF shares are held by institutional investors. 12.0% of Repay shares are held by insiders. Comparatively, 5.8% of SHF shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Earnings and Valuation

This table compares Repay and SHF”s revenue, earnings per share and valuation.

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

Summary

Repay beats SHF on 11 of the 14 factors compared between the two stocks.

About Repay

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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 SHF

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SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.