Analyzing Joint Stock Company Kaspi.kz (NASDAQ:KSPI) & Usio (NASDAQ:USIO)

Joint Stock Company Kaspi.kz (NASDAQ:KSPI) and Usio (NASDAQ:USIO) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares Joint Stock Company Kaspi.kz and Usio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Joint Stock Company Kaspi.kz	26.59%	48.73%	10.45%
Usio	-2.94%	-13.52%	-2.22%

Earnings and Valuation

This table compares Joint Stock Company Kaspi.kz and Usio”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Joint Stock Company Kaspi.kz	$7.70 billion	2.13	$2.04 billion	$10.80	7.60
Usio	$85.39 million	0.38	-$2.51 million	($0.09)	-13.11

Joint Stock Company Kaspi.kz has higher revenue and earnings than Usio. Usio is trading at a lower price-to-earnings ratio than Joint Stock Company Kaspi.kz, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Joint Stock Company Kaspi.kz has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Usio has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Joint Stock Company Kaspi.kz and Usio, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Joint Stock Company Kaspi.kz	1	3	1	0	2.00
Usio	3	0	1	0	1.50

Joint Stock Company Kaspi.kz currently has a consensus target price of $96.67, indicating a potential upside of 17.71%. Usio has a consensus target price of $4.00, indicating a potential upside of 238.98%. Given Usio’s higher probable upside, analysts clearly believe Usio is more favorable than Joint Stock Company Kaspi.kz.

Institutional & Insider Ownership

32.2% of Joint Stock Company Kaspi.kz shares are owned by institutional investors. Comparatively, 20.2% of Usio shares are owned by institutional investors. 17.8% of Usio shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Joint Stock Company Kaspi.kz beats Usio on 10 of the 13 factors compared between the two stocks.

About Joint Stock Company Kaspi.kz

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform. The Payments Platform segment facilities transactions between customers and merchants. This segment offers shopping transactions, regular household bills, and peer to peer payments for consumers; accepts payment online and in store, issue and settle invoices, pay suppliers and monitor merchant turnover. It also provides proprietary data facilities informed decision making across multiple areas of business. Its Marketplace Platform segment connects online, and offline merchants and consumers enabling merchants to enhance its sales through an omni channel strategy and enable consumers to buy products and services from various merchants. This segment also operates marketplace through m-commerce, a mobile solution for shopping in person which consumers can use e-commerce to shop anywhere, anytime with free delivery; Kaspi Travel allows consumers to book domestic and international flights and package holidays, domestic rail tickets. It also enhances merchants sales by connecting payments and fintech products, Kapsi advertising, and other delivery services. The Fintech Platform segment provides consumers with BNPL, finance, and savings products and merchants with merchant finance services through super apps and Kapsi.kz Super app. It also involved in the banking; distressed asset management; real estate business; payment processing; online travel; and storage and processing of information services. The company was incorporated in 2008 and is headquartered in Almaty, the Republic of Kazakhstan.

About Usio

Usio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing; and credit, prepaid card, and debit card-based processing services. Its ACH transaction processing services include Represented Check and Check Conversion for electronic payment facilitation. In addition, the company offers merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a website or retail services accessed through a physical terminal. Further, it provides a proprietary web-based customer service application that allows companies to process one-time and recurring payments through e-checks or credit cards; and an interactive voice response telephone system to companies, which accept payments directly from consumers over the telephone using e-checks or credit cards. Additionally, the company offers prepaid and incentive card issuance services; and operates a prepaid core processing platform, as well as provides additional services, such as electronic bill presentment, document composition, document decomposition, and printing and mailing services for various industry verticals, including utilities and financial institutions. It markets and sells ACH products and services primarily through resellers; and prepaid card program directly to government entities, corporations, and to consumers through the internet. The company was formerly known as Payment Data Systems, Inc. and changed its name to Usio, Inc. in June 2019. Usio, Inc. was incorporated in 1998 and is headquartered in San Antonio, Texas.