Reviewing DLocal (NASDAQ:DLO) & Global Payments (NYSE:GPN)

Global Payments (NYSE:GPN) and DLocal (NASDAQ:DLO) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Risk & Volatility

Global Payments has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, DLocal has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Insider and Institutional Ownership

89.8% of Global Payments shares are held by institutional investors. Comparatively, 90.1% of DLocal shares are held by institutional investors. 1.0% of Global Payments shares are held by insiders. Comparatively, 45.4% of DLocal shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Global Payments	19.68%	12.66%	6.12%
DLocal	17.80%	37.66%	14.84%

Valuation & Earnings

This table compares Global Payments and DLocal”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Payments	$10.11 billion	1.92	$1.57 billion	$7.12	11.53
DLocal	$745.97 million	5.90	$120.42 million	$0.56	25.14

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

Analyst Ratings

This is a summary of recent ratings for Global Payments and DLocal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Payments	1	15	7	2	2.40
DLocal	0	4	7	1	2.75

Global Payments currently has a consensus price target of $102.29, indicating a potential upside of 24.59%. DLocal has a consensus price target of $16.30, indicating a potential upside of 15.77%. Given Global Payments’ higher possible upside, equities analysts clearly believe Global Payments is more favorable than DLocal.

Summary

DLocal beats Global Payments on 8 of the 14 factors compared between the two stocks.

About Global Payments

Global Payments Inc. provides payment technology and software solutions for card, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. It operates through two segments, Merchant Solutions and Issuer Solutions. The Merchant Solutions segment offers authorization, settlement and funding, customer support, chargeback resolution, terminal rental, sales and deployment, payment security, and consolidated billing and reporting services. This segment also provides an array of enterprise software solutions that streamline business operations of its customers in various vertical markets; and value-added solutions and services, such as point-of-sale software, analytics and customer engagement, payroll and reporting, and human capital management. The Issuer Solutions segment offers solutions that enable financial institutions and retailers to manage their card portfolios through a platform; and commercial payments, account payables, and electronic payment alternatives solutions for businesses and governments. It markets its products and services through direct sales force, trade associations, agent and enterprise software providers, referral arrangements with value-added resellers, and independent sales organizations. The company was founded in 1967 and is headquartered in Atlanta, Georgia.

About DLocal

DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods. It also provides pay-out solution used for merchants to scale pay-out operations. In addition, the company offers dLocal for Platforms, an end-to-end payment solution that offers a range of services to help platforms manage payments. It serves its products to commerce, streaming, ride-hailing, financial services, advertising, SaaS, travel, e-learning, on-demand delivery, and gaming and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.