Reviewing PagSeguro Digital (NYSE:PAGS) & The Competition

PagSeguro Digital (NYSE: PAGS) is one of 60 public companies in the “Data processing & preparation” industry, but how does it compare to its competitors? We will compare PagSeguro Digital to related companies based on the strength of its risk, profitability, dividends, valuation, earnings, institutional ownership and analyst recommendations.

Insider and Institutional Ownership

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55.9% of shares of all “Data processing & preparation” companies are owned by institutional investors. 22.1% of shares of all “Data processing & preparation” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for PagSeguro Digital and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PagSeguro Digital 0 2 6 0 2.75
PagSeguro Digital Competitors 315 1495 2177 62 2.49

PagSeguro Digital presently has a consensus price target of $35.13, suggesting a potential downside of 1.64%. As a group, “Data processing & preparation” companies have a potential upside of 6.29%. Given PagSeguro Digital’s competitors higher probable upside, analysts clearly believe PagSeguro Digital has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares PagSeguro Digital and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PagSeguro Digital $790.32 million $149.95 million 255.07
PagSeguro Digital Competitors $942.71 million $45.39 million 22.47

PagSeguro Digital’s competitors have higher revenue, but lower earnings than PagSeguro Digital. PagSeguro Digital is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares PagSeguro Digital and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PagSeguro Digital N/A N/A N/A
PagSeguro Digital Competitors -18.40% -53.73% -7.38%

Summary

PagSeguro Digital beats its competitors on 7 of the 12 factors compared.

About PagSeguro Digital

PagSeguro Digital Ltd is a provider of financial technology solution company. The Company is focused primarily on micro-merchants, small companies and medium-sized companies in Brazil. The Company offers multiple digital payment solutions, In-person payments via POS devices that we sell to clients, free digital accounts, and withdrawing account balances. Its end-to-end digital ecosystem enables its customers accept payments and manage their businesses. It offers safe, affordable, simple, mobile-first solutions for merchants to accept payments and manage their cash through their PagSeguro digital accounts, without the need for a bank account. Its digital account offers more than 30 cash-in methods and six cash-out options including its PagSeguro prepaid card, all using proprietary technology platform and backed by the trusted PagSeguro and UOL brands. Its digital ecosystem also features other digital financial services, business management tools and functionalities for its clients.

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