Comparing PagSeguro Digital (NYSE:PAGS) & OppFi (NYSE:OPFI)

OppFi (NYSE:OPFI) and PagSeguro Digital (NYSE:PAGS) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Institutional and Insider Ownership

7.1% of OppFi shares are held by institutional investors. Comparatively, 45.9% of PagSeguro Digital shares are held by institutional investors. 70.2% of OppFi shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for OppFi and PagSeguro Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OppFi	0	3	1	0	2.25
PagSeguro Digital	1	4	3	0	2.25

OppFi presently has a consensus target price of $13.00, suggesting a potential upside of 53.57%. PagSeguro Digital has a consensus target price of $12.00, suggesting a potential upside of 28.49%. Given OppFi’s higher probable upside, research analysts clearly believe OppFi is more favorable than PagSeguro Digital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OppFi	10.86%	39.90%	15.95%
PagSeguro Digital	10.40%	16.44%	3.29%

Volatility and Risk

OppFi has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Earnings and Valuation

This table compares OppFi and PagSeguro Digital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OppFi	$597.05 million	1.21	$26.33 million	$0.93	9.10
PagSeguro Digital	$3.65 billion	0.71	$379.40 million	$1.36	6.87

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

Summary

OppFi beats PagSeguro Digital on 8 of the 13 factors compared between the two stocks.

About OppFi

OppFi Inc. operates a cialty finance platform that allows banks to offer credit access. Its platform facilitates the OppLoans, an installment loan product; SalaryTap, a payroll deduction secured installment loan product; and OppFi Card, a credit card product. OppFi Inc. was founded in 2012 and is headquartered in Chicago, Illinois.

About PagSeguro Digital

PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, a 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; PagBank digital account, which offers payment and banking services through the PagBank mobile app, as well as centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem; and PlugPag, a tool for medium-sized and larger merchants that enables them to connect their point of sale (POS) device directly to their enterprise resource planning software or sales automation system through Bluetooth. It also offers cash-in solutions; online and in-person payment tools; and online gaming and cross-border digital services, as well as issues prepaid, credit, and cash cards. In addition, the company provides functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, POS app, i-Banking App, Super App, and e-commerce support and bill payment services; and PedeFácil, an order management and food delivery 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 acquirers and sub acquirers. The company was founded in 2006 and is headquartered in São Paulo, Brazil.