E2open Parent (NYSE:ETWO) and PagSeguro Digital (NYSE:PAGS) Critical Analysis

PagSeguro Digital (NYSE:PAGSGet Free Report) and E2open Parent (NYSE:ETWOGet Free Report) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for PagSeguro Digital and E2open Parent, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PagSeguro Digital 0 4 5 0 2.56
E2open Parent 1 7 0 0 1.88

PagSeguro Digital currently has a consensus target price of $12.85, suggesting a potential downside of 2.91%. E2open Parent has a consensus target price of $4.29, suggesting a potential upside of 11.03%. Given E2open Parent’s higher probable upside, analysts plainly believe E2open Parent is more favorable than PagSeguro Digital.

Institutional & Insider Ownership

55.3% of PagSeguro Digital shares are held by institutional investors. 5.8% of E2open Parent shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

PagSeguro Digital has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500. Comparatively, E2open Parent has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Earnings & Valuation

This table compares PagSeguro Digital and E2open Parent’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PagSeguro Digital $2.91 billion 1.50 $291.47 million $0.96 13.78
E2open Parent $652.22 million 1.81 -$648.70 million ($4.30) -0.90

PagSeguro Digital has higher revenue and earnings than E2open Parent. E2open Parent is trading at a lower price-to-earnings ratio than PagSeguro Digital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares PagSeguro Digital and E2open Parent’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PagSeguro Digital 10.11% 13.36% 3.70%
E2open Parent -202.58% 3.21% 1.90%

Summary

PagSeguro Digital beats E2open Parent on 11 of the 14 factors compared between the two stocks.

About PagSeguro Digital

(Get Free Report)

PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, a 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; PagBank digital account, which offers payment and banking services through the PagBank mobile app, as well as centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem; and PlugPag, a tool for medium-sized and larger merchants that enables them to connect their point of sale (POS) device directly to their enterprise resource planning software or sales automation system through Bluetooth. It also offers cash-in solutions; online and in-person payment tools; and online gaming and cross-border digital services, as well as issues prepaid, credit, and cash cards. In addition, the company provides functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, POS app, i-Banking App, Super App, and e-commerce support and bill payment services; and PedeFácil, an order management and food delivery 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. The company was founded in 2006 and is headquartered in São Paulo, Brazil.

About E2open Parent

(Get Free Report)

E2open Parent Holdings, Inc. provides cloud-based and end-to-end supply chain management and orchestration SaaS platform in the Americas, Europe, and the Asia Pacific. Its software solutions orchestrate supply chains and realize value and return on investment for its blue-chip customers. The company's software combines networks, data, and applications to provide a platform that allows customers to optimize their channel and supply chain across channel shaping, demand sensing, business planning, global trade management, transportation and logistics, collaborative manufacturing, and supply management. It serves technology, consumer, industrial, transportation, and other industries. The company was incorporated in 2020 and is headquartered in Austin, Texas.

Receive News & Ratings for PagSeguro Digital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PagSeguro Digital and related companies with MarketBeat.com's FREE daily email newsletter.