Equitable (NYSE:EQH – Get Free Report) and PagSeguro Digital (NYSE:PAGS – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.
Earnings and Valuation
This table compares Equitable and PagSeguro Digital”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Equitable | $11.66 billion | 1.26 | -$1.38 billion | ($3.31) | -16.27 |
| PagSeguro Digital | $3.65 billion | 0.69 | $379.40 million | $1.43 | 6.33 |
Risk & Volatility
Equitable has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Equitable and PagSeguro Digital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Equitable | 1 | 2 | 10 | 1 | 2.79 |
| PagSeguro Digital | 1 | 5 | 2 | 0 | 2.12 |
Equitable currently has a consensus target price of $61.82, suggesting a potential upside of 14.79%. PagSeguro Digital has a consensus target price of $10.98, suggesting a potential upside of 21.35%. Given PagSeguro Digital’s higher probable upside, analysts plainly believe PagSeguro Digital is more favorable than Equitable.
Institutional & Insider Ownership
92.7% of Equitable shares are owned by institutional investors. Comparatively, 45.9% of PagSeguro Digital shares are owned by institutional investors. 1.0% of Equitable shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Equitable and PagSeguro Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Equitable | -8.72% | 511.35% | 0.61% |
| PagSeguro Digital | 10.46% | 16.36% | 3.25% |
Dividends
Equitable pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. PagSeguro Digital pays an annual dividend of $1.12 per share and has a dividend yield of 12.4%. Equitable pays out -36.3% of its earnings in the form of a dividend. PagSeguro Digital pays out 78.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equitable has raised its dividend for 2 consecutive years.
Summary
Equitable beats PagSeguro Digital on 10 of the 18 factors compared between the two stocks.
About Equitable
Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related services to various clients through institutional. The Protection Solutions segment provides life insurance products, such as VUL insurance and IUL insurance, term life, and employee benefits business, such as dental, vision, life, as well as short- and long-term disability insurance products to small and medium-sized businesses. The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products. The Legacy segment consists of the capital intensive fixed-rate GMxB business that includes ROP death benefits. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.
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.
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