Analyzing DynTek (OTCMKTS:DYNE) and Repay (NASDAQ:RPAY)

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

Insider & Institutional Ownership

82.7% of Repay shares are owned by institutional investors. 11.0% of Repay shares are owned by company insiders. Comparatively, 4.5% of DynTek shares are owned 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.

Profitability

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

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

Analyst Ratings

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

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

Repay currently has a consensus price target of $12.83, suggesting a potential upside of 57.27%. Given Repay’s stronger consensus rating and higher probable upside, analysts clearly believe Repay is more favorable than DynTek.

Earnings and Valuation

This table compares Repay and DynTek”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repay	$310.76 million	2.56	-$110.49 million	($0.87)	-9.38
DynTek	N/A	N/A	N/A	N/A	N/A

DynTek has lower revenue, but higher earnings than Repay.

Summary

Repay beats DynTek on 8 of the 9 factors compared between the two stocks.

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.

About DynTek

DynTek, Inc. provides professional information technology services to mid-market commercial businesses, state and local government agencies, and educational institutions. It offers infrastructure and data center solutions, including advanced networking, security, server virtualization, and servers and storage solutions; and Microsoft platform solutions comprising management and virtualization, messaging, communications, desktop, data platform, identity and security, portals and collaboration, and midmarket solutions. The company also provides endpoint computing solutions, such as desktop and application, application and desktop virtualization, and desktop management solutions; and talent acquisition and staff augmentation solutions. In addition, it engages in value-added resale of hardware and software products. The company was formerly known as TekInsight, Inc. and changed its name to DynTek, Inc. in December 2001. DynTek, Inc. was founded in 1989 and is headquartered in Newport Beach, California.