Paypoint (OTCMKTS:PYPTF) versus DLocal (NASDAQ:DLO) Critical Contrast

Paypoint (OTCMKTS:PYPTF) and DLocal (NASDAQ:DLO) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Analyst Ratings

This is a summary of recent recommendations for Paypoint and DLocal, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paypoint	0	0	0	0	0.00
DLocal	0	2	6	1	2.89

DLocal has a consensus price target of $17.22, suggesting a potential upside of 48.34%. Given DLocal’s stronger consensus rating and higher probable upside, analysts clearly believe DLocal is more favorable than Paypoint.

Valuation and Earnings

This table compares Paypoint and DLocal”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paypoint	$391.23 million	1.23	$24.49 million	N/A	N/A
DLocal	$745.97 million	4.86	$120.42 million	$0.56	20.73

DLocal has higher revenue and earnings than Paypoint.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paypoint	N/A	N/A	N/A
DLocal	17.80%	37.66%	14.84%

Risk and Volatility

Paypoint has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, DLocal has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Insider & Institutional Ownership

90.1% of DLocal shares are owned by institutional investors. 45.4% of DLocal shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

DLocal beats Paypoint on 13 of the 13 factors compared between the two stocks.

About Paypoint

PayPoint plc engages in the provision of payments and banking, shopping, and e-commerce services and products in the United Kingdom. The company operates through two segments: PayPoint and Love2shop. The PayPoint segment provides card payment services to retailers, including leased payment devices; EPoS; ATM cash machines; SIM cards sales; receipt advertising; bill payment services and cash top-ups to individual consumers; parcel delivery and collection services; retailer service fees solutions; and digital payment services, as well as cash through to digital services. The segment offers its products under PayPoint One, eMoney, MultiPay, CashOut, and Direct Debits platforms. The Love2shop segment is involved in the provision of shopping vouchers, cards, and e-codes which customers may redeem with participating retailers; and Christmas savings club, to which customers make regular payments throughout the year to help spread the cost of Christmas, before converting to a voucher. It serves consumers, SMEs, and convenience retailers in the commercial, not-for-profit, and public sectors. The company was founded in 1996 and is headquartered in Welwyn Garden City, the United Kingdom.

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.