Head to Head Survey: PagSeguro Digital (NYSE:PAGS) & Inception Growth Acquisition (NASDAQ:IGTA)

PagSeguro Digital (NYSE:PAGS) and Inception Growth Acquisition (NASDAQ:IGTA) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

45.9% of PagSeguro Digital shares are owned by institutional investors. Comparatively, 49.0% of Inception Growth Acquisition shares are owned by institutional investors. 3.8% of Inception Growth Acquisition shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for PagSeguro Digital and Inception Growth Acquisition, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagSeguro Digital	1	6	2	0	2.11
Inception Growth Acquisition	0	0	0	0	0.00

PagSeguro Digital currently has a consensus target price of $10.98, indicating a potential upside of 20.23%. Given PagSeguro Digital’s stronger consensus rating and higher possible upside, equities analysts clearly believe PagSeguro Digital is more favorable than Inception Growth Acquisition.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PagSeguro Digital	10.40%	16.44%	3.29%
Inception Growth Acquisition	N/A	N/A	N/A

Volatility & Risk

PagSeguro Digital has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Inception Growth Acquisition has a beta of -100.11, indicating that its share price is 10,111% less volatile than the S&P 500.

Earnings & Valuation

This table compares PagSeguro Digital and Inception Growth Acquisition”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PagSeguro Digital	$3.65 billion	0.70	$379.40 million	$1.36	6.72
Inception Growth Acquisition	N/A	N/A	N/A	N/A	N/A

PagSeguro Digital has higher revenue and earnings than Inception Growth Acquisition.

Summary

PagSeguro Digital beats Inception Growth Acquisition on 8 of the 10 factors compared between the two stocks.

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.

About Inception Growth Acquisition

Inception Growth Acquisition Limited does not have significant operations. The company focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. It intends to focus on sourcing opportunities in the technology, media and telecom, sports and entertainment, and non-gambling game sectors. The company was incorporated in 2021 and is based in New York, New York.