PagSeguro Digital (NYSE:PAGS) and Renren (NYSE:RENN) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.
This table compares PagSeguro Digital and Renren’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PagSeguro Digital has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Renren has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.
Valuation & Earnings
This table compares PagSeguro Digital and Renren’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PagSeguro Digital||$1.14 billion||13.23||$248.78 million||$0.88||52.22|
|Renren||$498.20 million||0.10||$72.54 million||$1.29||0.57|
PagSeguro Digital has higher revenue and earnings than Renren. Renren is trading at a lower price-to-earnings ratio than PagSeguro Digital, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for PagSeguro Digital and Renren, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PagSeguro Digital presently has a consensus price target of $41.63, suggesting a potential downside of 9.41%. Given PagSeguro Digital’s higher possible upside, research analysts plainly believe PagSeguro Digital is more favorable than Renren.
Institutional and Insider Ownership
1.5% of Renren shares are held by institutional investors. 42.4% of Renren shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
PagSeguro Digital beats Renren on 10 of the 13 factors compared between the two stocks.
PagSeguro Digital Company Profile
PagSeguro Digital Ltd. provides financial technology solutions and services for micro-merchants, and small and medium-sized businesses in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, an end-to-end 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; and Free PagSeguro digital account, which centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem. It also offers online gaming and cross-border digital services. In addition, the company offers functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, eWallet, and its (point of sale) POS 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. Additionally, the company engages in the in-person payment activities through POS devices; and issuance of prepaid cards to clients for spending or withdrawing account balances. It also operates an online platform that facilitates peer-to-peer lending. The company was founded in 2006 and is headquartered in São Paulo, Brazil. PagSeguro Digital Ltd. is a subsidiary of Universo Online S.A.
Renren Company Profile
Renren Inc. operates a social networking Internet platform in the People's Republic of China. It operates through two segments, Renren and Auto Group. The company operates Renren.com and Renren Mobile App that enable users to communicate and stay connected with friends, classmates, family members, and co-workers; and woxiu.com, a PC-based social video platform for users to stream their performances live to viewers. The company also sells used automobiles and related products; arranges financing options for customers through its financial services partners; provides credit financing for used automobile dealerships; and sells new cars, as well as provides value-added services, such as warranties, insurance, and after-sale products and services. It offers vehicles at its in-store showrooms; and through Kaixin Auto app, as well as through other online vertical channels, such as Autohome and 58.com. In addition, the company develops Chime, a software as a solution platform that offers lead generation and customer relationship management solutions for real estate professionals; and provides customizable lead capture landing pages that offer multiple home value estimates in the United States. Further, it provides online and mobile services for the trucking industry in the United States. The company was formerly known as Oak Pacific Interactive and changed its name to Renren Inc. in December 2010. Renren Inc. was founded in 2002 and is headquartered in Beijing, the People's Republic of China.
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