Head-To-Head Review: Priority Technology (NASDAQ:PRTH) and TuanChe (NASDAQ:TC)

TuanChe (NASDAQ:TC) and Priority Technology (NASDAQ:PRTH) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Profitability

This table compares TuanChe and Priority Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TuanChe	N/A	N/A	N/A
Priority Technology	0.74%	-9.60%	0.90%

Analyst Ratings

This is a breakdown of recent ratings and price targets for TuanChe and Priority Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TuanChe	0	0	0	0	N/A
Priority Technology	0	1	1	0	2.50

Priority Technology has a consensus target price of $9.00, indicating a potential upside of 71.10%. Given Priority Technology’s higher possible upside, analysts plainly believe Priority Technology is more favorable than TuanChe.

Valuation and Earnings

This table compares TuanChe and Priority Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TuanChe	$22.87 million	0.11	-$11.69 million	N/A	N/A
Priority Technology	$813.88 million	0.52	-$1.31 million	($0.58)	-9.07

Priority Technology has higher revenue and earnings than TuanChe.

Institutional & Insider Ownership

8.9% of TuanChe shares are owned by institutional investors. Comparatively, 11.5% of Priority Technology shares are owned by institutional investors. 0.5% of TuanChe shares are owned by company insiders. Comparatively, 76.3% of Priority Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

TuanChe has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500. Comparatively, Priority Technology has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Summary

Priority Technology beats TuanChe on 10 of the 11 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 Priority Technology

Priority Technology Holdings, Inc. operates as a payment technology company in the United States. The company operates through three segments: Small and Medium-Sized Businesses (SMB) Payments, Business-To-Business (B2B) Payments, and Enterprise Payments. It offers SMB payments processing solutions for B2C transactions through independent sales organizations, financial institutions, independent software vendors, and other referral partners through its MX product suite, which includes MX Connect and MX Merchant products, such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B and ACH.com, and others, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance to resellers and merchant clients using core payment processing. The company also offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. In addition, it provides curated managed services; payment-adjacent technologies to facilitate the acceptance of electronic payments from customers; and Plastiq payables management software, which helps businesses in improving cash flow with instant access to working capital. Further, the company offers embedded finance and BaaS solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments; and managed services solutions that provide audience-specific programs for institutional partners and other third parties; and consulting and development solutions. It serves SMB, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. The company was founded in 2005 and is headquartered in Alpharetta, Georgia.