Marqeta (NASDAQ:MQ) vs. DLocal (NASDAQ:DLO) Financial Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marqeta	0.33%	0.27%	0.15%
DLocal	15.85%	41.22%	14.27%

Institutional and Insider Ownership

78.6% of Marqeta shares are owned by institutional investors. Comparatively, 90.1% of DLocal shares are owned by institutional investors. 12.6% of Marqeta shares are owned by company insiders. Comparatively, 45.4% of DLocal shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Marqeta and DLocal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marqeta	2	8	1	0	1.91
DLocal	0	2	5	1	2.88

Marqeta currently has a consensus price target of $5.22, suggesting a potential upside of 36.26%. DLocal has a consensus price target of $16.63, suggesting a potential upside of 35.71%. Given Marqeta’s higher possible upside, equities analysts plainly believe Marqeta is more favorable than DLocal.

Earnings and Valuation

This table compares Marqeta and DLocal”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marqeta	$624.88 million	2.60	-$13.93 million	$0.01	383.00
DLocal	$1.09 billion	3.30	$196.80 million	$0.63	19.44

DLocal has higher revenue and earnings than Marqeta. DLocal is trading at a lower price-to-earnings ratio than Marqeta, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Marqeta has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, DLocal has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Summary

DLocal beats Marqeta on 12 of the 15 factors compared between the two stocks.

About Marqeta

Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.

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.