PagSeguro Digital (NYSE:PAGS – Get Free Report) and OppFi (NYSE:OPFI – Get Free Report) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.
Volatility & Risk
PagSeguro Digital has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, OppFi has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for PagSeguro Digital and OppFi, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PagSeguro Digital | 1 | 4 | 3 | 0 | 2.25 |
| OppFi | 0 | 3 | 1 | 0 | 2.25 |
Profitability
This table compares PagSeguro Digital and OppFi’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PagSeguro Digital | 10.40% | 16.44% | 3.29% |
| OppFi | 10.86% | 39.90% | 15.95% |
Institutional and Insider Ownership
45.9% of PagSeguro Digital shares are held by institutional investors. Comparatively, 7.1% of OppFi shares are held by institutional investors. 70.2% of OppFi shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares PagSeguro Digital and OppFi”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PagSeguro Digital | $3.65 billion | 0.70 | $379.40 million | $1.36 | 6.72 |
| OppFi | $608.66 million | 1.14 | $26.33 million | $0.93 | 8.77 |
PagSeguro Digital has higher revenue and earnings than OppFi. PagSeguro Digital is trading at a lower price-to-earnings ratio than OppFi, indicating that it is currently the more affordable of the two stocks.
Summary
OppFi beats PagSeguro Digital on 8 of the 13 factors compared between the two stocks.
About PagSeguro Digital
PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, a digital ecosystem that operates as a closed loop where its clients are able to address their primary day to day financial needs, including receiving and spending funds, and managing and growing their businesses; PagBank digital account, which offers payment and banking services through the PagBank mobile app, as well as centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem; and PlugPag, a tool for medium-sized and larger merchants that enables them to connect their point of sale (POS) device directly to their enterprise resource planning software or sales automation system through Bluetooth. It also offers cash-in solutions; online and in-person payment tools; and online gaming and cross-border digital services, as well as issues prepaid, credit, and cash cards. In addition, the company provides functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, POS app, i-Banking App, Super App, and e-commerce support and bill payment services; and PedeFácil, an order management and food delivery app. Further, it is involved in processing of back-office solutions, including sales reconciliation, and gateway solutions and services, as well as the capture of credit cards with acquirers and sub acquirers. The company was founded in 2006 and is headquartered in São Paulo, Brazil.
About OppFi
OppFi Inc. operates a cialty finance platform that allows banks to offer credit access. Its platform facilitates the OppLoans, an installment loan product; SalaryTap, a payroll deduction secured installment loan product; and OppFi Card, a credit card product. OppFi Inc. was founded in 2012 and is headquartered in Chicago, Illinois.
Receive News & Ratings for PagSeguro Digital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PagSeguro Digital and related companies with MarketBeat.com's FREE daily email newsletter.
