Arko (NASDAQ:ARKO) and Paya (NASDAQ:PAYA) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Volatility and Risk
Arko has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500. Comparatively, Paya has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500.
This table compares Arko and Paya’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
This is a breakdown of recent ratings and price targets for Arko and Paya, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Arko presently has a consensus target price of $12.67, indicating a potential upside of 28.86%. Paya has a consensus target price of $15.40, indicating a potential upside of 68.67%. Given Paya’s higher probable upside, analysts clearly believe Paya is more favorable than Arko.
Institutional and Insider Ownership
69.1% of Arko shares are held by institutional investors. Comparatively, 41.2% of Paya shares are held by institutional investors. 1.5% of Paya shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Arko and Paya’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Arko beats Paya on 6 of the 9 factors compared between the two stocks.
Arko Corp. operates convenience stores in the United States. It operates through three segments: Retail, Wholesale, and GPM Petroleum. The Retail segment engages in the sale of fuel and merchandise to retail consumers. The Wholesale segment supplies fuel to third-party dealers and consignment agents. The GPM Petroleum segment supplies fuel to sub-wholesalers and bulk purchasers. The company operates approximately 2,950 locations comprising approximately 1,350 company-operated stores and approximately 1,600 dealer sites. Arko Corp. is based in Richmond, Virginia.
Paya Holdings Inc., through its subsidiaries, provides integrated payment and commerce solutions that help customers accept and make payments, expedite receipt of money, and increase operating efficiency. The company through two segments, Integrated Solutions and Payment Services. It processes payments through credit and debit card, ACH, and check payment processing solutions. It serves customers approximately through 2,000 distribution partners with focus on targeted verticals, such as healthcare, education, non-profit, government, utilities, and other B2B goods and services. The company also has offices in offices in Reston, Virginia, Fort Walton Beach, Florida, Dayton, Ohio, Mt. Vernon, Ohio, and Dallas, Texas. The company is headquartered in Atlanta, Georgia.
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