Head to Head Analysis: DLocal (NASDAQ:DLO) vs. Freightos (NASDAQ:CRGO)

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

Analyst Ratings

This is a summary of recent recommendations for Freightos and DLocal, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freightos	1	0	1	0	2.00
DLocal	0	2	6	1	2.89

Freightos currently has a consensus target price of $3.00, suggesting a potential upside of 45.63%. DLocal has a consensus target price of $17.00, suggesting a potential upside of 23.55%. Given Freightos’ higher possible upside, research analysts plainly believe Freightos is more favorable than DLocal.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freightos	-59.46%	-37.28%	-25.50%
DLocal	18.00%	40.40%	15.43%

Risk and Volatility

Freightos has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500. Comparatively, DLocal has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Valuation and Earnings

This table compares Freightos and DLocal”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freightos	$29.46 million	3.59	-$17.52 million	($0.35)	-5.89
DLocal	$1.09 billion	3.71	$196.80 million	$0.64	21.50

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

Insider and Institutional Ownership

22.7% of Freightos shares are held by institutional investors. Comparatively, 90.1% of DLocal shares are held by institutional investors. 19.6% of Freightos shares are held by insiders. Comparatively, 45.4% of DLocal shares are held by 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.

Summary

DLocal beats Freightos on 14 of the 15 factors compared between the two stocks.

About Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.

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.