Critical Analysis: Afterpay (OTCMKTS:AFTPF) and DLocal (NASDAQ:DLO)

Afterpay (OTCMKTS:AFTPF) and DLocal (NASDAQ:DLO) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Afterpay and DLocal, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Afterpay	0	0	0	0	N/A
DLocal	2	5	2	0	2.00

DLocal has a consensus target price of $19.95, indicating a potential upside of 5.72%. Given DLocal’s higher probable upside, analysts clearly believe DLocal is more favorable than Afterpay.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Afterpay	N/A	N/A	N/A
DLocal	24.98%	35.63%	15.78%

Earnings and Valuation

This table compares Afterpay and DLocal’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Afterpay	N/A	N/A	N/A	N/A	N/A
DLocal	$418.92 million	13.03	$108.68 million	$0.42	44.93

DLocal has higher revenue and earnings than Afterpay.

Insider & Institutional Ownership

41.7% of DLocal shares are owned by institutional investors. 45.4% of DLocal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

DLocal beats Afterpay on 8 of the 8 factors compared between the two stocks.

About Afterpay

Afterpay Limited provides payments solutions for customers, merchants, and businesses. The company operates through Afterpay ANZ, Afterpay US, Clearpay, and Pay Now segments. It offers Afterpay and Clearpay services; and Pay Now services comprising mobility, health, and e-services. The company also operates Genderfree shop. It serves in Australia, New Zealand, the United States, Canada, France, Italy, Spain, and the United Kingdom. The company was formerly known as Afterpay Touch Group Limited and changed its name to Afterpay Limited in November 2019. Afterpay Limited was incorporated in 2017 and is based in Melbourne, Australia.

About DLocal

DLocal Limited operates a payment processing platform worldwide. Its payments platform enables merchants to get paid and to make payments online. The company serves commerce, streaming, ride-hailing, financial services, advertising, software as a service, travel, e-learning, on-demand delivery, gaming, and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.