Is Shift4 Payments Stock a Buy?
This summer, I compared two recent digital payments IPOs: Shift4 Payments (NYSE: FOUR) and REPAY Holdings. I ultimately opted to purchase the latter, but since then it's been Shift4 and its focus on the beaten-down hospitality and restaurant industries that has been the winner. As of Thursday morning, the stock has just about doubled since the end of its first trading day.
However, this is still a tiny company in the world of digital payments that stands to benefit from a gradual COVID-19 economic recovery. Shift4 is thus worth a serious look for investors who want small businesses with big potential upside.
Shift4 may be an obscure name in an industry dominated by giants like PayPal Holdings and Square, but don't overlook its importance to the small-business community. It serves over 200,000 businesses (mostly in the U.S.) and has carved out a niche for itself among restaurants and hotels. It offers point-of-sale services, including contactless devices and QR code scanners, an online ordering system for restaurants, payment security, and analytics for these mostly small businesses.
Source Fool.com
