PagSeguro Digital (NYSE: PAGS) and NEWTEK Business Services (NASDAQ:NEWT) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.
This table compares PagSeguro Digital and NEWTEK Business Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NEWTEK Business Services||107.74%||8.63%||4.56%|
NEWTEK Business Services pays an annual dividend of $1.76 per share and has a dividend yield of 9.5%. PagSeguro Digital does not pay a dividend.
This is a summary of recent ratings for PagSeguro Digital and NEWTEK Business Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NEWTEK Business Services||0||2||0||0||2.00|
PagSeguro Digital currently has a consensus price target of $34.75, indicating a potential downside of 3.98%. NEWTEK Business Services has a consensus price target of $19.00, indicating a potential upside of 2.21%. Given NEWTEK Business Services’ higher probable upside, analysts plainly believe NEWTEK Business Services is more favorable than PagSeguro Digital.
Insider & Institutional Ownership
23.2% of NEWTEK Business Services shares are owned by institutional investors. 6.7% of NEWTEK Business Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares PagSeguro Digital and NEWTEK Business Services’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PagSeguro Digital||$326.37 million||11.90||$36.46 million||$0.48||75.40|
|NEWTEK Business Services||$38.91 million||8.82||$38.98 million||N/A||N/A|
NEWTEK Business Services has lower revenue, but higher earnings than PagSeguro Digital.
NEWTEK Business Services beats PagSeguro Digital on 8 of the 13 factors compared between the two stocks.
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.
About NEWTEK Business Services
Newtek Business Services Corp. is an internally managed non-diversified closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation primarily through loans originated by its small business finance platform and its equity investments in certain portfolio companies that it controls. The Company is a national non-bank lender that provides, together with its controlled portfolio companies, a range of business services and financial products under the Newtek brand to the small and medium-sized business (SMB) market. The Company issues debt and makes equity investments in portfolio companies in various industries. Its products and services include Business Lending including the United States Small Business Administration (SBA) 7(a) and 504 lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), Data Backup, and Payroll and Benefits Solutions to SMB accounts across all industries.
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