DLocal (NASDAQ:DLO – Get Free Report) and Lesaka Technologies (NASDAQ:LSAK – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Institutional & Insider Ownership
90.1% of DLocal shares are held by institutional investors. Comparatively, 24.2% of Lesaka Technologies shares are held by institutional investors. 45.4% of DLocal shares are held by company insiders. Comparatively, 5.1% of Lesaka Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
DLocal has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Lesaka Technologies has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| DLocal | 15.04% | 41.64% | 12.96% |
| Lesaka Technologies | 0.43% | 1.65% | 0.46% |
Earnings and Valuation
This table compares DLocal and Lesaka Technologies”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DLocal | $1.09 billion | 3.71 | $196.80 million | $0.67 | 20.54 |
| Lesaka Technologies | $721.55 million | 0.52 | $2.76 million | $0.04 | 108.25 |
DLocal has higher revenue and earnings than Lesaka Technologies. DLocal is trading at a lower price-to-earnings ratio than Lesaka Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for DLocal and Lesaka Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DLocal | 0 | 1 | 5 | 0 | 2.83 |
| Lesaka Technologies | 0 | 2 | 0 | 1 | 2.67 |
DLocal currently has a consensus target price of $19.20, suggesting a potential upside of 39.53%. Lesaka Technologies has a consensus target price of $7.56, suggesting a potential upside of 74.60%. Given Lesaka Technologies’ higher possible upside, analysts clearly believe Lesaka Technologies is more favorable than DLocal.
Summary
DLocal beats Lesaka Technologies on 12 of the 15 factors compared between the two stocks.
About DLocal
DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods. It also provides pay-out solution used for merchants to scale pay-out operations. In addition, the company offers dLocal for Platforms, an end-to-end payment solution that offers a range of services to help platforms manage payments. It serves its products to commerce, streaming, ride-hailing, financial services, advertising, SaaS, travel, e-learning, on-demand delivery, and gaming and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.
About Lesaka Technologies
Lesaka Technologies, Inc. operates as a Fintech company that utilizes its proprietary banking and payment technologies to deliver financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. It offers cash management solutions, growth capital, card acquiring, bill payment technologies, and value-added services to formal and informal retail merchants, as well as banking, lending, and insurance solutions to consumers across Southern Africa. The company also engages in the sale of POS devices, SIM cards, and other consumables; and license of rights to use certain technology developed by the company, as well as offers related technology services. The company was formerly known as Net 1 UEPS Technologies, Inc. and changed its name to Lesaka Technologies, Inc. in May 2022. Lesaka Technologies, Inc. was incorporated in 1997 and is headquartered in Johannesburg, South Africa.
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