Xoom (NASDAQ: XOOM) and Net 1 UEPS Technologies (NASDAQ:UEPS) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Valuation and Earnings

This table compares Xoom and Net 1 UEPS Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xoom N/A N/A N/A ($1.19) N/A
Net 1 UEPS Technologies $610.07 million 1.04 $72.95 million $1.23 9.08

Net 1 UEPS Technologies has higher revenue and earnings than Xoom. Xoom is trading at a lower price-to-earnings ratio than Net 1 UEPS Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Xoom and Net 1 UEPS Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xoom -37.74% -25.16% -21.82%
Net 1 UEPS Technologies 11.17% 13.06% 6.95%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Xoom and Net 1 UEPS Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xoom 0 0 0 0 N/A
Net 1 UEPS Technologies 0 0 1 0 3.00

Insider & Institutional Ownership

56.1% of Net 1 UEPS Technologies shares are owned by institutional investors. 3.2% of Net 1 UEPS Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Net 1 UEPS Technologies beats Xoom on 8 of the 8 factors compared between the two stocks.

Xoom Company Profile

Xoom Corporation (Xoom) is engaged in the digital consumer-to-consumer international money transfer business. The Company offers money transfer services from the United States to around 32 countries and its cross-border bill payment services from the United States to approximately five countries. Xoom’s solutions offer its customers a way to send money to, and pay bills for family and friends from any Internet-enabled location. The Company’s operating platform provides various solutions for transferring funds internationally, such as origination, funding, disbursement and transaction processing. The Company’s technology platform includes a customer interface which enables customers to send transactions from its Website, mobile Website or mobile application, using a computer, a tablet or a mobile phone; a risk management system; a transaction processing platform, and a disbursement integration platform. The Company provides its services under the XOOM brand.

Net 1 UEPS Technologies Company Profile

Net 1 UEPS Technologies, Inc. is a provider of payment solutions, transaction processing services and financial technology across multiple industries. The Company develops and markets a transaction processing solution that encompasses its smart card-based alternative payment system for the unbanked and under-banked populations of developing economies and for mobile transaction channels. The Company operates through three segments: South African transaction processing, International transaction processing, and Financial inclusion and applied technologies. The Company also provides secure transaction technology solutions and services, by offering transaction processing, financial and clinical risk management solutions to various industries. It offers secure online transaction processing, cryptography, mobile telephony, integrated circuit card (chip/smart card) technologies, and the design and provision of financial and value-added services to its cardholder base.

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