Nayax (NASDAQ:NYAX – Get Free Report) and Datasea (NASDAQ:DTSS – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
Risk and Volatility
Nayax has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500. Comparatively, Datasea has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.
Profitability
This table compares Nayax and Datasea’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nayax | -6.20% | -13.46% | -4.85% |
| Datasea | -49.62% | -1,115.69% | -249.11% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nayax | 0 | 3 | 0 | 0 | 2.00 |
| Datasea | 0 | 0 | 0 | 0 | N/A |
Nayax presently has a consensus target price of $27.67, indicating a potential upside of 29.40%. Given Nayax’s higher possible upside, analysts plainly believe Nayax is more favorable than Datasea.
Valuation & Earnings
This table compares Nayax and Datasea’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nayax | $235.49 million | 2.98 | -$15.89 million | ($0.46) | -46.48 |
| Datasea | $7.05 million | 1.91 | -$9.48 million | ($5.57) | -0.79 |
Datasea has lower revenue, but higher earnings than Nayax. Nayax is trading at a lower price-to-earnings ratio than Datasea, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
34.9% of Nayax shares are owned by institutional investors. Comparatively, 82.1% of Datasea shares are owned by institutional investors. 41.1% of Datasea shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Nayax beats Datasea on 7 of the 12 factors compared between the two stocks.
About Nayax
Nayax Ltd., a fintech company, operates system and payment platform for multiple retailers in the United States, Europe, the United Kingdom, Australia, Israel, and rest of the world. The company offers AMIT 3.0, a machine-to-machine vending telemetry solution; Nayax Core, a management and monitoring software for vending machines and other unattended machines; MoMa, a mobile app for unattended machine; Tigapo back-office software suite, a cloud-based platform; EV Core, a smart, cloud-based management platform; Retail Management Cloud, a comprehensive attended retail management platform; Loyalty and Marketing Suite, a consumer engagement marketing and loyalty platform; Monyx Wallet, a digital wallet app enabling cashless payments with mobile phones; Weezmo, a consumer engagement and marketing platform; and Tigapo app, a proprietary mobile app to help family entertainment center businesses. It provides electric vehicle charging stations; VPOS Touch, a credit card reader cashless payment device; VPOS Fusion, a cashless payment card reader; ONYX, a contactless card reader and telemetry device; NOVA 156, an electronic cash register; DOT, a smart QR and barcode reader; UNO Plus and UNO 8, which are EMV and FeliCa contactless readers; EMV SOM, a PCI-PTS ready contactless EMV reader module; Nova Market, a cashless micro market and self-checkout solution; NOVA 55, an a handheld smart point of sale (POS) device; NOVA 45, a handheld mini smart terminals for attended POS; and Retail One, a universal retail solution that integrates directly with SAP. The company sells its products directly, as well as through resellers and distributors. It serves various verticals, including vending machines, coffee machines, unattended checkout counters, self-service kiosks, ticketing machines, car wash stations, gaming machines, amusement rides, laundromats, and EV charging stations. Nayax Ltd. was incorporated in 2005 and is headquartered in Herzliya, Israel.
About Datasea
Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.
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