PagSeguro Digital (NYSE:PAGS – Get Rating) and Wejo Group (NASDAQ:WEJO – Get Rating) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Profitability
This table compares PagSeguro Digital and Wejo Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PagSeguro Digital | 9.81% | 17.41% | 4.88% |
| Wejo Group | -1,282.59% | -37,962.51% | -353.82% |
Analyst Ratings
This is a summary of current recommendations for PagSeguro Digital and Wejo Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PagSeguro Digital | 1 | 4 | 6 | 0 | 2.45 |
| Wejo Group | 0 | 1 | 0 | 0 | 2.00 |
Institutional & Insider Ownership
52.5% of PagSeguro Digital shares are owned by institutional investors. Comparatively, 46.0% of Wejo Group shares are owned by institutional investors. 19.8% of Wejo Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares PagSeguro Digital and Wejo Group’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PagSeguro Digital | $2.91 billion | 1.37 | $291.47 million | $0.88 | 13.77 |
| Wejo Group | $8.40 million | 3.73 | -$159.25 million | ($1.44) | -0.20 |
PagSeguro Digital has higher revenue and earnings than Wejo Group. Wejo Group is trading at a lower price-to-earnings ratio than PagSeguro Digital, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
PagSeguro Digital has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Wejo Group has a beta of 2.9, indicating that its stock price is 190% more volatile than the S&P 500.
Summary
PagSeguro Digital beats Wejo Group on 10 of the 14 factors compared between the two stocks.
About PagSeguro Digital
PagSeguro Digital Ltd. is engaged in the provision of financial technology solutions focused on consumers, individual entrepreneurs, micro-merchants, small companies and medium-sized companies in Brazil. Its business model covers the following pillars: Multiple digital payment solutions; In-person payments via POS devices that sell to merchants; Free digital accounts; Issuer of prepaid cards to clients for spending or withdrawing account balances, and Operating as an acquirer. The company was founded in 2006 and is headquartered in Sau Paulo, Brazil.
About Wejo Group
Wejo Group Limited provides software and technology solutions to various market verticals. It offers Wejo Neural Edge, a cloud software and analytics platform that makes accessing and sharing volumes of connected vehicle data. The company provides Wejo Marketplace Data Solutions, which includes its data visualization platform; and Wejo Software and Cloud Solutions. It serves customers in public and private organizations, including automotive original equipment manufacturers, first tier automotive suppliers, fleet management companies, departments of transportation, retailers, mapping companies, universities, advertising and construction firms, and research departments. The company was founded in 2014 and is headquartered in Manchester, the United Kingdom.
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