Head to Head Contrast: Loomis (OTCMKTS:LOIMF) vs. PagSeguro Digital (NYSE:PAGS)

Loomis (OTCMKTS:LOIMF) and PagSeguro Digital (NYSE:PAGS) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares Loomis and PagSeguro Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loomis	5.73%	13.56%	4.52%
PagSeguro Digital	11.04%	15.52%	3.24%

Analyst Ratings

This is a summary of recent ratings for Loomis and PagSeguro Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loomis	0	0	0	0	0.00
PagSeguro Digital	0	4	5	0	2.56

PagSeguro Digital has a consensus price target of $12.33, indicating a potential upside of 31.84%. Given PagSeguro Digital’s stronger consensus rating and higher probable upside, analysts clearly believe PagSeguro Digital is more favorable than Loomis.

Insider & Institutional Ownership

45.9% of PagSeguro Digital shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Loomis and PagSeguro Digital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loomis	$2.88 billion	N/A	$155.24 million	$2.45	17.50
PagSeguro Digital	$3.22 billion	0.96	$392.38 million	$1.24	7.54

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

Risk and Volatility

Loomis has a beta of -1.54, indicating that its stock price is 254% less volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.

Summary

PagSeguro Digital beats Loomis on 9 of the 12 factors compared between the two stocks.

About Loomis

Loomis AB (publ) provides solutions for the distribution, payments, handling, storage, and recycling of cash and other valuables. The company offers a range of solutions for cash in transit, cash management services, foreign exchange services, automated teller machines, automated solutions, and international valuables logistics, as well as operates Loomis Pay, a payment service that enables processing of various types of payment methods, such as card, cash, and digital alternatives. It serves financial institutions, banks, retailers, commercial enterprises, and other customers, as well as public sector in Sweden, the United States, France, Switzerland, Spain, the United Kingdom, and internationally. Loomis AB (publ) was founded in 1852 and is headquartered in Stockholm, Sweden.

About PagSeguro Digital

PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, a digital ecosystem that operates as a closed loop where its clients are able to address their primary day to day financial needs, including receiving and spending funds, and managing and growing their businesses; PagBank digital account, which offers payment and banking services through the PagBank mobile app, as well as centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem; and PlugPag, a tool for medium-sized and larger merchants that enables them to connect their point of sale (POS) device directly to their enterprise resource planning software or sales automation system through Bluetooth. It also offers cash-in solutions; online and in-person payment tools; and online gaming and cross-border digital services, as well as issues prepaid, credit, and cash cards. In addition, the company provides functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, POS app, i-Banking App, Super App, and e-commerce support and bill payment services; and PedeFácil, an order management and food delivery app. Further, it is involved in processing of back-office solutions, including sales reconciliation, and gateway solutions and services, as well as the capture of credit cards with acquirers and sub acquirers. The company was founded in 2006 and is headquartered in São Paulo, Brazil.