DLocal (NASDAQ:DLO) vs. International Money Express (NASDAQ:IMXI) Critical Review

International Money Express (NASDAQ:IMXI) and DLocal (NASDAQ:DLO) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

86.7% of International Money Express shares are owned by institutional investors. Comparatively, 90.1% of DLocal shares are owned by institutional investors. 5.1% of International Money Express 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 will outperform the market over the long term.

Valuation and Earnings

This table compares International Money Express and DLocal”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Money Express	$607.78 million	0.78	$32.67 million	$1.08	14.60
DLocal	$1.09 billion	3.47	$196.80 million	$0.64	18.97

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

Volatility & Risk

International Money Express has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, DLocal has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for International Money Express and DLocal, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Money Express	0	5	1	0	2.17
DLocal	0	2	6	1	2.89

International Money Express presently has a consensus price target of $14.33, indicating a potential downside of 9.11%. DLocal has a consensus price target of $17.00, indicating a potential upside of 40.03%. Given DLocal’s stronger consensus rating and higher possible upside, analysts plainly believe DLocal is more favorable than International Money Express.

Profitability

This table compares International Money Express and DLocal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Money Express	5.38%	29.00%	8.56%
DLocal	18.00%	40.40%	15.43%

Summary

DLocal beats International Money Express on 14 of the 15 factors compared between the two stocks.

About International Money Express

International Money Express, Inc., together with its subsidiaries, operates as an omnichannel money remittance services company in the United States, Latin America, Mexico, Central and South America, the Caribbean, Africa, and Asia. The company offers remittance services, which include a suite of ancillary financial processing solutions and payment services; and online payment options, pre-paid debit cards, and direct deposit payroll cards. It provides services through sending and paying agents and company-operated stores, as well as through online and Internet-enabled mobile devices. International Money Express, Inc. is headquartered in Miami, Florida.

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.