Lesaka Technologies (NASDAQ:LSAK – Get Free Report) and BB Seguridade Participacoes (OTCMKTS:BBSEY – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Institutional and Insider Ownership
24.2% of Lesaka Technologies shares are held by institutional investors. Comparatively, 0.0% of BB Seguridade Participacoes shares are held by institutional investors. 5.1% of Lesaka Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Lesaka Technologies and BB Seguridade Participacoes’ 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% |
| BB Seguridade Participacoes | 87.94% | 79.22% | 43.59% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lesaka Technologies | 1 | 1 | 1 | 0 | 2.00 |
| BB Seguridade Participacoes | 1 | 3 | 0 | 0 | 1.75 |
Lesaka Technologies currently has a consensus target price of $7.56, suggesting a potential upside of 81.73%. Given Lesaka Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Lesaka Technologies is more favorable than BB Seguridade Participacoes.
Volatility and Risk
Lesaka Technologies has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, BB Seguridade Participacoes has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.
Valuation & Earnings
This table compares Lesaka Technologies and BB Seguridade Participacoes”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lesaka Technologies | $721.55 million | 0.49 | $2.76 million | $0.04 | 104.00 |
| BB Seguridade Participacoes | $1.85 billion | 8.22 | $1.61 billion | $0.90 | 8.71 |
BB Seguridade Participacoes has higher revenue and earnings than Lesaka Technologies. BB Seguridade Participacoes is trading at a lower price-to-earnings ratio than Lesaka Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
BB Seguridade Participacoes beats Lesaka Technologies on 8 of the 14 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 BB Seguridade Participacoes
BB Seguridade Participações S.A., through its subsidiaries operates in the insurance, pension plans, and bonds, businesses in Brazil. The company operates through Security and Brokerage segments. The Security segment offers life, property, rural, special risks and financial, transport, hulls, and housing people insurance products. It also offers pension plans, dental, and capitalization plans. The Brokerage segment engages in the brokerage, management, and promotion of pension plans, capitalization, capitalization, and dental plans. BB Seguridade Participações S.A. was incorporated in 2012 and is headquartered in Brasilia, Brazil. BB Seguridade Participações S.A. operates as a subsidiary of Banco do Brasil S.A.
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