Head-To-Head Comparison: PagSeguro Digital (PAGS) vs. Its Rivals

PagSeguro Digital (NYSE:PAGS) is one of 336 publicly-traded companies in the “Financial Services” industry, but how does it compare to its rivals? We will compare PagSeguro Digital to related businesses based on the strength of its risk, dividends, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Volatility & Risk

PagSeguro Digital has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, PagSeguro Digital’s rivals have a beta of 2.52, indicating that their average stock price is 152% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
PagSeguro Digital	$3.65 billion	$379.40 million	5.56
PagSeguro Digital Competitors	$6.52 billion	$1.12 billion	10.58

PagSeguro Digital’s rivals have higher revenue and earnings than PagSeguro Digital. PagSeguro Digital is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations for PagSeguro Digital and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagSeguro Digital	1	6	1	0	2.00
PagSeguro Digital Competitors	1949	6935	11709	446	2.51

PagSeguro Digital currently has a consensus price target of $10.07, suggesting a potential upside of 26.70%. As a group, “Financial Services” companies have a potential downside of 4.62%. Given PagSeguro Digital’s higher probable upside, equities research analysts plainly believe PagSeguro Digital is more favorable than its rivals.

Dividends

PagSeguro Digital pays an annual dividend of $1.12 per share and has a dividend yield of 14.1%. PagSeguro Digital pays out 78.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Financial Services” companies pay a dividend yield of 4.2% and pay out -72.2% of their earnings in the form of a dividend.

Institutional & Insider Ownership

45.9% of PagSeguro Digital shares are owned by institutional investors. Comparatively, 43.0% of shares of all “Financial Services” companies are owned by institutional investors. 21.7% of shares of all “Financial Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares PagSeguro Digital and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PagSeguro Digital	10.46%	16.36%	3.25%
PagSeguro Digital Competitors	-315.15%	-42.19%	-6.56%

Summary

PagSeguro Digital rivals beat PagSeguro Digital on 9 of the 15 factors compared.

About PagSeguro Digital

PagSeguro Digital Ltd. is a Brazil-based financial technology company that provides payment and digital banking services to businesses and consumers. Its platform helps merchants accept payments through in-person and online channels. The company offers payment terminals, payment processing, digital checkout tools and related business services. Through its PagBank brand, it also provides digital accounts, cards and other financial services to individuals and businesses. PagSeguro traces its roots to an online payments service launched in Brazil in 2006 by UOL.