Net 1 UEPS Technologies (NASDAQ: UEPS) and Moneygram International (NASDAQ:MGI) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Net 1 UEPS Technologies and Moneygram International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Net 1 UEPS Technologies 0 0 0 0 N/A
Moneygram International 1 4 0 0 1.80

Moneygram International has a consensus target price of $16.21, indicating a potential upside of 11.51%. Given Moneygram International’s higher probable upside, analysts plainly believe Moneygram International is more favorable than Net 1 UEPS Technologies.

Earnings and Valuation

This table compares Net 1 UEPS Technologies and Moneygram International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Net 1 UEPS Technologies $610.07 million 0.85 $72.95 million $1.35 6.74
Moneygram International $1.63 billion 0.48 $16.30 million $0.45 32.31

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

Profitability

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

Net Margins Return on Equity Return on Assets
Net 1 UEPS Technologies 11.96% 14.06% 7.24%
Moneygram International 1.86% -14.04% 1.20%

Insider & Institutional Ownership

56.1% of Net 1 UEPS Technologies shares are held by institutional investors. Comparatively, 93.8% of Moneygram International shares are held by institutional investors. 3.2% of Net 1 UEPS Technologies shares are held by company insiders. Comparatively, 49.5% of Moneygram International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Net 1 UEPS Technologies has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Moneygram International has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500.

About Net 1 UEPS Technologies

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.

About Moneygram International

MoneyGram International, Inc. (MoneyGram) is a global provider of money transfer services. The Company operates through two segments: Global Funds Transfer and Financial Paper Products. The Company offers its services under the MoneyGram brand. The Company’s Global Funds Transfer Segment provides money transfer services and bill payment services primarily to unbanked and underbanked consumers. The Financial Paper Products Segment provides money orders to consumers through its agents and financial institutions located across the United States and Puerto Rico. The Company’s offerings include money transfers, bill payment services, money order services and official check processing. The Company’s money transfer services enable its consumers to send and receive funds across the world through its global network of locations. The Company also offers Digital/Self-Service solutions, such as moneygram.com, mobile solutions, account deposit and kiosk-based services.

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