Contrasting Joint Stock Company Kaspi.kz (NASDAQ:KSPI) & PagSeguro Digital (NYSE:PAGS)

PagSeguro Digital (NYSE:PAGS) and Joint Stock Company Kaspi.kz (NASDAQ:KSPI) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Profitability

This table compares PagSeguro Digital and Joint Stock Company Kaspi.kz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PagSeguro Digital	11.00%	15.39%	3.18%
Joint Stock Company Kaspi.kz	30.35%	55.31%	11.20%

Risk and Volatility

PagSeguro Digital has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Joint Stock Company Kaspi.kz has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PagSeguro Digital and Joint Stock Company Kaspi.kz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagSeguro Digital	0	4	5	0	2.56
Joint Stock Company Kaspi.kz	2	1	2	0	2.00

PagSeguro Digital presently has a consensus target price of $11.71, suggesting a potential upside of 7.27%. Joint Stock Company Kaspi.kz has a consensus target price of $111.00, suggesting a potential upside of 42.00%. Given Joint Stock Company Kaspi.kz’s higher probable upside, analysts plainly believe Joint Stock Company Kaspi.kz is more favorable than PagSeguro Digital.

Earnings and Valuation

This table compares PagSeguro Digital and Joint Stock Company Kaspi.kz”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PagSeguro Digital	$3.22 billion	N/A	$392.38 million	$1.29	8.47
Joint Stock Company Kaspi.kz	$4.82 billion	3.23	$2.18 billion	$11.09	7.05

Joint Stock Company Kaspi.kz has higher revenue and earnings than PagSeguro Digital. Joint Stock Company Kaspi.kz is trading at a lower price-to-earnings ratio than PagSeguro Digital, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

45.9% of PagSeguro Digital shares are held by institutional investors. Comparatively, 32.2% of Joint Stock Company Kaspi.kz shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Joint Stock Company Kaspi.kz beats PagSeguro Digital on 7 of the 12 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 Joint Stock Company Kaspi.kz

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform. The Payments Platform segment facilities transactions between customers and merchants. This segment offers shopping transactions, regular household bills, and peer to peer payments for consumers; accepts payment online and in store, issue and settle invoices, pay suppliers and monitor merchant turnover. It also provides proprietary data facilities informed decision making across multiple areas of business. Its Marketplace Platform segment connects online, and offline merchants and consumers enabling merchants to enhance its sales through an omni channel strategy and enable consumers to buy products and services from various merchants. This segment also operates marketplace through m-commerce, a mobile solution for shopping in person which consumers can use e-commerce to shop anywhere, anytime with free delivery; Kaspi Travel allows consumers to book domestic and international flights and package holidays, domestic rail tickets. It also enhances merchants sales by connecting payments and fintech products, Kapsi advertising, and other delivery services. The Fintech Platform segment provides consumers with BNPL, finance, and savings products and merchants with merchant finance services through super apps and Kapsi.kz Super app. It also involved in the banking; distressed asset management; real estate business; payment processing; online travel; and storage and processing of information services. The company was incorporated in 2008 and is headquartered in Almaty, the Republic of Kazakhstan.