PagSeguro Digital (NYSE: PAGS) and Tucows (NASDAQ:TCX) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
This is a breakdown of current ratings and target prices for PagSeguro Digital and Tucows, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PagSeguro Digital currently has a consensus price target of $36.70, suggesting a potential upside of 32.25%. Given PagSeguro Digital’s higher possible upside, analysts clearly believe PagSeguro Digital is more favorable than Tucows.
Insider & Institutional Ownership
91.8% of PagSeguro Digital shares are owned by institutional investors. Comparatively, 55.3% of Tucows shares are owned by institutional investors. 13.2% of Tucows shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares PagSeguro Digital and Tucows’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PagSeguro Digital||$790.32 million||4.32||$149.95 million||$0.57||48.68|
|Tucows||$329.42 million||1.95||$22.32 million||N/A||N/A|
PagSeguro Digital has higher revenue and earnings than Tucows.
This table compares PagSeguro Digital and Tucows’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PagSeguro Digital beats Tucows on 7 of the 11 factors compared between the two stocks.
About PagSeguro Digital
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.
Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in Canada, the United States, and Germany. It operates in two segments, Network Access Services and Domain Services. The Network Access Services segment offers mobile and fixed high-speed Internet access services, and Internet hosting and network consulting services. The Domain Services segment provides OpenSRS domain service that offers services related to the registration, renewal, transfer, and management of domain names; OpenSRS value-added services, such as hosted email service that provides email delivery and Webmail access to various mailboxes; Internet security services; publishing tools; SSL certificates; and billing services. This segment also offers Platypus billing software, which provides billing, provisioning, and customer care software solutions to Internet service providers (ISPs); and Internet domain name registration and email services to individuals and small businesses. This segment offers its services under the OpenSRS, eNom, and Hover brands. Tucows Inc. provides its services through an Internet-based distribution network of ISPs, Web hosting companies, and other providers of Internet services to end-users. The company was formerly known as Infonautics, Inc. and changed its name to Tucows Inc. in August 2001. Tucows Inc. was founded in 1992 and is headquartered in Toronto, Canada.
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