Analyzing DLocal (NASDAQ:DLO) and Lesaka Technologies (NASDAQ:LSAK)

Lesaka Technologies (NASDAQ:LSAK) and DLocal (NASDAQ:DLO) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Institutional & Insider Ownership

24.2% of Lesaka Technologies shares are owned by institutional investors. Comparatively, 90.1% of DLocal shares are owned by institutional investors. 5.1% of Lesaka Technologies shares are owned by company insiders. Comparatively, 45.4% of DLocal shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Lesaka Technologies and DLocal, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lesaka Technologies	0	2	0	1	2.67
DLocal	0	1	5	0	2.83

Lesaka Technologies presently has a consensus target price of $7.56, suggesting a potential upside of 81.29%. DLocal has a consensus target price of $19.20, suggesting a potential upside of 38.93%. Given Lesaka Technologies’ higher probable upside, equities analysts plainly believe Lesaka Technologies is more favorable than DLocal.

Valuation & Earnings

This table compares Lesaka Technologies and DLocal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lesaka Technologies	$721.55 million	0.50	$2.76 million	$0.04	104.25
DLocal	$1.09 billion	3.73	$196.80 million	$0.67	20.63

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

Profitability

This table compares Lesaka Technologies and DLocal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lesaka Technologies	0.43%	1.65%	0.46%
DLocal	15.04%	41.64%	12.96%

Volatility & Risk

Lesaka Technologies has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, DLocal has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Summary

DLocal beats Lesaka Technologies on 12 of the 15 factors compared between the two stocks.

About Lesaka Technologies

Lesaka Technologies, Inc. operates as a Fintech company that utilizes its proprietary banking and payment technologies to deliver financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. It offers cash management solutions, growth capital, card acquiring, bill payment technologies, and value-added services to formal and informal retail merchants, as well as banking, lending, and insurance solutions to consumers across Southern Africa. The company also engages in the sale of POS devices, SIM cards, and other consumables; and license of rights to use certain technology developed by the company, as well as offers related technology services. The company was formerly known as Net 1 UEPS Technologies, Inc. and changed its name to Lesaka Technologies, Inc. in May 2022. Lesaka Technologies, Inc. was incorporated in 1997 and is headquartered in Johannesburg, South Africa.

About DLocal

DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods. It also provides pay-out solution used for merchants to scale pay-out operations. In addition, the company offers dLocal for Platforms, an end-to-end payment solution that offers a range of services to help platforms manage payments. It serves its products to commerce, streaming, ride-hailing, financial services, advertising, SaaS, travel, e-learning, on-demand delivery, and gaming and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.