Head-To-Head Review: iPass (IPAS) vs. PagSeguro (PAGS)

iPass (NASDAQ: IPAS) and PagSeguro (NYSE:PAGS) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for iPass and PagSeguro, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iPass 0 0 3 0 3.00
PagSeguro 1 2 7 0 2.60

iPass currently has a consensus price target of $1.80, indicating a potential upside of 318.60%. PagSeguro has a consensus price target of $35.80, indicating a potential upside of 5.70%. Given iPass’ stronger consensus rating and higher possible upside, analysts clearly believe iPass is more favorable than PagSeguro.

Earnings and Valuation

This table compares iPass and PagSeguro’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iPass $54.40 million 0.58 -$20.55 million ($0.31) -1.39
PagSeguro $790.32 million 4.60 $149.95 million $0.57 59.42

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

Institutional and Insider Ownership

18.4% of iPass shares are owned by institutional investors. 8.2% of iPass shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares iPass and PagSeguro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iPass -39.29% -659.67% -103.58%
PagSeguro N/A N/A N/A

Summary

PagSeguro beats iPass on 9 of the 13 factors compared between the two stocks.

About iPass

iPass Inc. provides mobile connectivity that enables Wi-Fi access on various mobile devices in the United States and internationally. It offers mobile connectivity services that provide cloud-based solution allowing customers and their users access to its Wi-Fi network to stay connected to the people and information. The company provides business to business mobile connectivity solutions to large and small enterprises, as well as to strategic partnerships comprising original equipment manufacturers, loyalty programs, software product and service providers, and communication companies; and iPass SmartConnect that takes the guesswork out of Wi-Fi automatically connecting customers to the hotspot for their needs. It operates hotspots at airports, hotels, train stations, convention centers, outdoor venues, inflight, and others. The company sells its services directly through its global sales force, as well as through reseller and strategic partners. iPass Inc. was founded in 1996 and is headquartered in Redwood Shores, California.

About PagSeguro

PagSeguro Digital Ltd. provides financial technology solutions and services for micro-merchants, and small and medium-sized businesses in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, an end-to-end 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; and Free PagSeguro digital account, which centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem. It also acquires and sells point of sale (POS) devices and other products; and offers online gaming and cross-border digital services. In addition, the company offers functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, eWallet, and its POS 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 administrators and acquirers. Additionally, the company engages in the in-person payment activities through POS devices; and issuance of prepaid cards to clients for spending or withdrawing account balances. It also provides online gaming and cross-border digital services; and operates an online platform that facilitates peer-to-peer lending. The company was founded in 2006 and is headquartered in São Paulo, Brazil. PagSeguro Digital Ltd. is a subsidiary of Universo Online S.A.

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