Contrasting PagSeguro Digital (NYSE:PAGS) & Expensify (NASDAQ:EXFY)

Expensify (NASDAQ:EXFYGet Free Report) and PagSeguro Digital (NYSE:PAGSGet Free Report) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Valuation & Earnings

This table compares Expensify 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
Expensify $139.24 million 0.82 -$10.06 million ($0.17) -8.35
PagSeguro Digital $3.22 billion N/A $392.38 million $1.29 7.97

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

Profitability

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

Net Margins Return on Equity Return on Assets
Expensify -10.83% -11.75% -8.46%
PagSeguro Digital 11.00% 15.39% 3.18%

Insider & Institutional Ownership

68.4% of Expensify shares are held by institutional investors. Comparatively, 45.9% of PagSeguro Digital shares are held by institutional investors. 12.3% of Expensify shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Expensify and PagSeguro Digital, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Expensify 1 1 1 0 2.00
PagSeguro Digital 0 4 5 0 2.56

Expensify currently has a consensus price target of $3.50, suggesting a potential upside of 146.48%. PagSeguro Digital has a consensus price target of $11.71, suggesting a potential upside of 13.90%. Given Expensify’s higher probable upside, equities research analysts clearly believe Expensify is more favorable than PagSeguro Digital.

Volatility and Risk

Expensify has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Summary

PagSeguro Digital beats Expensify on 9 of the 13 factors compared between the two stocks.

About Expensify

(Get Free Report)

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.

About PagSeguro Digital

(Get Free Report)

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.

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