Head-To-Head Analysis: Quhuo (NASDAQ:QH) & Repay (NASDAQ:RPAY)

Quhuo (NASDAQ:QH) and Repay (NASDAQ:RPAY) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quhuo	N/A	N/A	N/A
Repay	-25.53%	8.73%	4.65%

Insider & Institutional Ownership

0.2% of Quhuo shares are held by institutional investors. Comparatively, 82.7% of Repay shares are held by institutional investors. 33.1% of Quhuo shares are held by company insiders. Comparatively, 11.0% of Repay shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Quhuo has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Repay has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Quhuo and Repay, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quhuo	0	0	0	0	0.00
Repay	0	1	5	0	2.83

Repay has a consensus price target of $12.00, suggesting a potential upside of 66.44%. Given Repay’s stronger consensus rating and higher possible upside, analysts clearly believe Repay is more favorable than Quhuo.

Valuation & Earnings

This table compares Quhuo and Repay”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quhuo	$3.59 billion	0.00	$470,000.00	N/A	N/A
Repay	$310.76 million	2.27	-$110.49 million	($0.87)	-8.29

Quhuo has higher revenue and earnings than Repay.

Summary

Repay beats Quhuo on 8 of the 12 factors compared between the two stocks.

About Quhuo

Quhuo Limited, through its subsidiaries, operates a gig economy platform in the People’s Republic of China. The company offers on-demand delivery solutions focusing on preparing food and deliver of other items, such as grocery and fresh food; and mobility services solutions comprise ride-hailing solutions, shared-bike maintenance, freight service, and vehicle export solutions. It also provides housekeeping solutions for hotels and other services, including maintenance services for short-term rental properties. In addition, the company offers Quhuo+, a logistics support and training software, as well as to manage delivery riders. Further, it engages in the development of computer software and applications; and bed and breakfast operations. The company was founded in 2012 and is based in Beijing, the People’s Republic of China.

About Repay

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.