QC (OTCMKTS:QCCO) and Net 1 UEPS Technologies (NASDAQ:UEPS) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.
This is a breakdown of current recommendations and price targets for QC and Net 1 UEPS Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Net 1 UEPS Technologies||0||0||3||0||3.00|
Net 1 UEPS Technologies has a consensus target price of $17.00, suggesting a potential upside of 276.94%. Given Net 1 UEPS Technologies’ higher probable upside, analysts clearly believe Net 1 UEPS Technologies is more favorable than QC.
This table compares QC and Net 1 UEPS Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Net 1 UEPS Technologies||6.39%||13.96%||8.30%|
Institutional and Insider Ownership
53.6% of Net 1 UEPS Technologies shares are held by institutional investors. 63.4% of QC shares are held by insiders. Comparatively, 3.5% of Net 1 UEPS Technologies shares are held 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 and Valuation
This table compares QC and Net 1 UEPS Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|QC||$98.21 million||0.10||-$3.54 million||N/A||N/A|
|Net 1 UEPS Technologies||$612.89 million||0.42||$39.15 million||N/A||N/A|
Net 1 UEPS Technologies has higher revenue and earnings than QC.
Risk and Volatility
QC has a beta of 2.39, suggesting that its stock price is 139% more volatile than the S&P 500. Comparatively, Net 1 UEPS Technologies has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.
Net 1 UEPS Technologies beats QC on 9 of the 11 factors compared between the two stocks.
QC Holdings, Inc. and its subsidiaries provide various financial services. The company operates through three segments: Branch Lending, Centralized Lending, and E-Lending. The Branch Lending segment offers payday loans, installment loans, credit services, open-end credit, check cashing services, title loans, debit cards, money transfers, and money orders through its retail branches. The Centralized Lending segment provides long-term installment loans comprising signature and auto equity loans. The E-Lending segment is involved in the Internet lending operations in the United States and Canada. As of December 31, 2014, it operated 409 branches with locations in Alabama, Arizona, California, Colorado, Idaho, Illinois, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Nevada, New Mexico, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin. QC Holdings, Inc. was founded in 1984 and is headquartered in Overland Park, Kansas.
About Net 1 UEPS Technologies
Net 1 UEPS Technologies, Inc. provides payment solutions, transaction processing services, and financial technologies to various industries in South Africa, South Korea, and internationally. The company develops and markets transaction processing solutions that comprise its smart card-based alternative payment system for the unbanked and under-banked populations of developing economies, and for mobile transaction channels. It operates through three segments: South African Transaction Processing, International Transaction Processing, and Financial Inclusion and Applied Technologies. The South African Transaction Processing segment provides welfare benefit distribution services to the South African government and transaction processing for retailers, utilities, and banks. The International Transaction Processing segment offers payment processing services to merchants and card issuers through its value-added network. The Financial Inclusion and Applied Technologies segment provides short-term loans; and smart card accounts. This segment also sells prepaid products comprising electricity and airtime, as well as hardware and software products; and offers life insurance products. Net 1 UEPS Technologies, Inc. was founded in 1989 and is headquartered in Johannesburg, South Africa.
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