Lesaka Technologies (LSAK) and Its Peers Financial Contrast

Lesaka Technologies (NASDAQ:LSAK) is one of 341 publicly-traded companies in the “Financial Services” industry, but how does it contrast to its rivals? We will compare Lesaka Technologies to similar companies based on the strength of its valuation, profitability, institutional ownership, analyst recommendations, earnings, risk and dividends.

Volatility and Risk

Lesaka Technologies has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, Lesaka Technologies’ rivals have a beta of 2.51, suggesting that their average share price is 151% more volatile than the S&P 500.

Insider & Institutional Ownership

24.2% of Lesaka Technologies shares are owned by institutional investors. Comparatively, 43.0% of shares of all “Financial Services” companies are owned by institutional investors. 6.0% of Lesaka Technologies shares are owned by company insiders. Comparatively, 21.9% of shares of all “Financial Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Lesaka Technologies and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lesaka Technologies	0.44%	4.93%	1.39%
Lesaka Technologies Competitors	-409.12%	-40.47%	-6.29%

Valuation and Earnings

This table compares Lesaka Technologies and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lesaka Technologies	$721.55 million	$2.76 million	88.00
Lesaka Technologies Competitors	$6.50 billion	$1.09 billion	10.42

Lesaka Technologies’ rivals have higher revenue and earnings than Lesaka Technologies. Lesaka Technologies is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Lesaka Technologies and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lesaka Technologies	0	2	0	1	2.67
Lesaka Technologies Competitors	1988	6946	11713	446	2.50

Lesaka Technologies presently has a consensus target price of $7.56, indicating a potential upside of 114.77%. As a group, “Financial Services” companies have a potential downside of 6.28%. Given Lesaka Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Lesaka Technologies is more favorable than its rivals.

Summary

Lesaka Technologies beats its rivals on 7 of the 13 factors compared.

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.