Green Dot (NYSE:GDOT) vs. DLocal (NASDAQ:DLO) Critical Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Green Dot	-2.33%	9.81%	1.59%
DLocal	17.80%	37.66%	14.84%

Insider and Institutional Ownership

92.6% of Green Dot shares are owned by institutional investors. Comparatively, 90.1% of DLocal shares are owned by institutional investors. 1.4% of Green Dot shares are owned by company insiders. Comparatively, 45.4% of DLocal shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Green Dot has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, DLocal has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Earnings & Valuation

This table compares Green Dot and DLocal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Dot	$1.72 billion	0.38	-$26.70 million	($0.85)	-14.02
DLocal	$745.97 million	5.01	$120.42 million	$0.56	21.38

DLocal has lower revenue, but higher earnings than Green Dot. Green Dot 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 current ratings and target prices for Green Dot and DLocal, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Dot	2	4	1	0	1.86
DLocal	0	4	6	1	2.73

Green Dot currently has a consensus price target of $12.56, indicating a potential upside of 5.43%. DLocal has a consensus price target of $16.40, indicating a potential upside of 37.01%. Given DLocal’s stronger consensus rating and higher possible upside, analysts plainly believe DLocal is more favorable than Green Dot.

Summary

DLocal beats Green Dot on 13 of the 15 factors compared between the two stocks.

About Green Dot

Green Dot Corporation, a financial technology and registered bank holding company, provides various financial services to consumers and businesses in the United States. It operates through three segments: Consumer Services, Business to Business Services, and Money Movement Services. The company provides deposit account programs, including consumer and small business checking account products, network-branded reloadable prepaid debit cards and gift cards, and secured credit programs. It offers money processing services, such as cash transfer services that enable consumers to deposit or pick up cash and pay bills with cash at the point-of-sale at any participating retailer; and simply paid disbursement services, which enable wages and authorized funds disbursement to its deposit account programs and accounts issued by any third-party bank or program manager. In addition, the company offers tax processing services comprising tax refund transfers, which provide the processing technology to facilitate receipt of a taxpayers' refund proceeds; small business lending to independent tax preparation providers that seek small advances; and fast cash advance, a loan that enables tax refund recipients. Green Dot Corporation was incorporated in 1999 and is headquartered in Austin, Texas.

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.