Critical Survey: Paymentus (NYSE:PAY) versus TuanChe (NASDAQ:TC)

TuanChe (NASDAQ:TC) and Paymentus (NYSE:PAY) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Volatility and Risk

TuanChe has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Paymentus has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500.

Insider and Institutional Ownership

8.9% of TuanChe shares are owned by institutional investors. Comparatively, 78.4% of Paymentus shares are owned by institutional investors. 0.5% of TuanChe shares are owned by company insiders. Comparatively, 87.8% of Paymentus shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares TuanChe and Paymentus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TuanChe	N/A	N/A	N/A
Paymentus	5.19%	10.84%	9.24%

Analyst Ratings

This is a summary of recent ratings for TuanChe and Paymentus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TuanChe	0	0	0	0	0.00
Paymentus	0	5	2	1	2.50

Paymentus has a consensus price target of $30.00, suggesting a potential upside of 7.94%. Given Paymentus’ stronger consensus rating and higher possible upside, analysts clearly believe Paymentus is more favorable than TuanChe.

Earnings and Valuation

This table compares TuanChe and Paymentus”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TuanChe	$49.18 million	0.04	-$11.69 million	N/A	N/A
Paymentus	$871.75 million	3.98	$22.32 million	$0.34	81.74

Paymentus has higher revenue and earnings than TuanChe.

Summary

Paymentus beats TuanChe on 13 of the 13 factors compared between the two stocks.

About TuanChe

TuanChe Limited, through its subsidiaries, operates as an omni-channel automotive marketplace in China and internationally. It organizes auto shows and special promotion events; and provides integrated marketing solutions to industry customers, which include automakers, franchised dealerships, secondary dealers, and automotive service providers, as well as enable interactions between participants on both sides of a potential transaction. The company also offers business and technical support, and consulting services; online marketing services through various online platforms, including tuanche.com website, WeChat account, WeChat mini-program, mobile applications, and Cheshangtong, a SaaS product; and referral services for commercial bank to enhance its auto loan business. The company has a strategic partnership with Alibaba Group's Tmall; and Beijing Easyhome Furnishing Chain Group Co., Ltd. TuanChe Limited was founded in 2010 and is headquartered in Beijing, China.

About Paymentus

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.