Head-To-Head Comparison: Macquarie Group (OTCMKTS:MQBKY) vs. Cielo (OTCMKTS:CIOXY)

Cielo (OTCMKTS:CIOXY) and Macquarie Group (OTCMKTS:MQBKY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Cielo and Macquarie Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cielo	$2.12 billion	1.07	$418.05 million	$0.16	5.25
Macquarie Group	N/A	N/A	N/A	$4.18	43.39

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cielo and Macquarie Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cielo	0	0	0	0	0.00
Macquarie Group	1	2	0	0	1.67

Institutional & Insider Ownership

0.0% of Cielo shares are held by institutional investors. Comparatively, 0.1% of Macquarie Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Cielo and Macquarie Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cielo	17.54%	12.28%	1.80%
Macquarie Group	N/A	N/A	N/A

Dividends

Cielo pays an annual dividend of $0.03 per share and has a dividend yield of 3.6%. Macquarie Group pays an annual dividend of $5.74 per share and has a dividend yield of 3.2%. Cielo pays out 18.8% of its earnings in the form of a dividend. Macquarie Group pays out 137.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cielo is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Cielo beats Macquarie Group on 6 of the 10 factors compared between the two stocks.

About Cielo

Cielo S.A., through its subsidiaries, provides payment services in Brazil and the United States. The company provides services related to credit and debit cards, and other payment methods, including signing up of merchants and service providers; rental, installation, and maintenance of point-of-sale terminals; and data capture and processing of electronic and manual transactions, as well as the issuance and management of payment accounts. It also offers services related to the processing means of payments that involve cards, maintenance services, and contacts with merchants for acceptance of credit and debit cards; development and licensing of computer software; electronic transactions processing; and technology services for collection and management of accounts payable and receivable using the Internet. The company was formerly known as Companhia Brasileira de Meios de Pagamento and changed its name to Cielo S.A. in December 2009. Cielo S.A. was founded in 1995 and is headquartered in Barueri, Brazil.

About Macquarie Group

Macquarie Group Limited provides diversified financial services in Australia, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through four segments: Macquarie Asset Management (MAM), Banking and Financial Services (BFS), Commodities and Global Markets (CGM), and Macquarie Capital. The MAM segment provides investment solutions to clients across various capabilities in private markets and public investments, including infrastructure, green investments, agriculture and natural assets, real estate, private credit, asset finance, equities, fixed income, and multi-asset solutions. The BFS segment offers personal banking products comprising home loans, car loans, transaction and savings accounts, and credit cards; and wrap platform and cash management, financial advisory, and private banking services, as well as investment and superannuation products. It also provides deposit, lending, and payment solutions and services to business clients. The CGM segment provides risk management, lending and financing, capital solutions, market access, and physical execution and logistics to corporate and institutional clients; and specialist finance and asset management solutions. The Macquarie Capital segment provides advisory and capital raising services. It is also involved in development and investment in infrastructure and energy projects and companies; and brokerage business, including equity research, sales, execution capabilities, and corporate access. Macquarie Group Limited was founded in 1969 and is headquartered in Sydney, Australia.