Head to Head Comparison: Cantaloupe (NASDAQ:CTLP) and PagSeguro Digital (NYSE:PAGS)

Cantaloupe (NASDAQ:CTLP) and PagSeguro Digital (NYSE:PAGS) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

75.8% of Cantaloupe shares are held by institutional investors. Comparatively, 45.9% of PagSeguro Digital shares are held by institutional investors. 7.1% of Cantaloupe shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Cantaloupe and PagSeguro Digital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cantaloupe	$312.57 million	2.52	$64.53 million	$0.21	50.81
PagSeguro Digital	$3.22 billion	1.05	$392.38 million	$1.29	7.96

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cantaloupe	1	7	0	0	1.88
PagSeguro Digital	0	4	5	0	2.56

Cantaloupe presently has a consensus target price of $12.73, suggesting a potential upside of 19.34%. PagSeguro Digital has a consensus target price of $11.71, suggesting a potential upside of 14.06%. Given Cantaloupe’s higher probable upside, research analysts plainly believe Cantaloupe is more favorable than PagSeguro Digital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cantaloupe	21.33%	10.43%	6.62%
PagSeguro Digital	11.00%	15.39%	3.18%

Risk & Volatility

Cantaloupe has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

About Cantaloupe

Cantaloupe, Inc., a digital payments and software services company, provides technology solutions for self-service commerce market. The company offers integrated solutions for payments processing, logistics, and back-office management. It also provides G11 cashless and pulse kits that are 4G LTE digital payment devices for payment and consumer engagement applications; G11 chip kit, a digital reader that accepts contact EMV and contactless EMV payment methods; Engage series comprising Engage and Engage Combo, which are digital touchscreen devices that offers networking, security, and interactivity payment methods; and card touchscreen card readers, including P66, P100, P100Pro, and P30. In addition, the company offers self-checkout kiosks,?smart store?concepts, and the Cantaloupe Go management platform comprising Go Mini, Go MiniX, Go Plus100, Go Plus200, Go Plus300, Go Max, Cooler Cafe, and Smart Market; Go Portal, a robust cloud-based platform; and Cheq products, which supports attended and unattended self-service kiosks for the stadium, entertainment, and festival sectors. Further, it provides integrated software services for payment or asset tracking devices in the field to connect into platform for advanced data management, analytics, route scheduling, and loyalty and reward programs; and a range of self-service hardware solutions for vending, micro-markets, amusement, arcade, commercial laundry, air/vacuum, car wash, and other applications. Additionally, the company offers professional, network infrastructure, card processing, and customer/consumer services. Cantaloupe, Inc. was formerly known as USA Technologies, Inc. The company was incorporated in 1992 and is headquartered in Malvern, Pennsylvania.

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.