Reviewing PagSeguro Digital Ltd. (PAGS)’s and X Financial (NYSE:XYF)’s results

PagSeguro Digital Ltd. (NYSE:PAGS) and X Financial (NYSE:XYF) compete against each other in the Credit Services sector. We will compare them and contrast their analyst recommendations, profitability, risk, dividends, institutional ownership, earnings and valuation.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PagSeguro Digital Ltd. N/A 0.00 N/A 0.73 38.44
X Financial N/A 0.00 N/A 0.85 6.34

Table 1 shows gross revenue, earnings per share and valuation of the two companies. Currently more expensive of the two stocks is the company with a higher price-to-earnings ratio. PagSeguro Digital Ltd.’s currently higher price-to-earnings ratio means it is more expensive than X Financial.

Profitability

Table 2 has PagSeguro Digital Ltd. and X Financial’s return on equity, return on assets and net margins.

Net Margins Return on Equity Return on Assets
PagSeguro Digital Ltd. 0.00% 15.7% 9.3%
X Financial 0.00% 0% 0%

Dividends

PagSeguro Digital Ltd. pays out its dividends annually at $0.24 per share and 0.65% dividend yield. X Financial does not pay a dividend.

Analyst Ratings

In next table is shown PagSeguro Digital Ltd. and X Financial’s ratings and recommendations.

Sell Ratings Hold Ratings Buy Ratings Rating Score
PagSeguro Digital Ltd. 1 0 3 2.75
X Financial 0 0 0 0.00

PagSeguro Digital Ltd.’s downside potential is -5.04% at a $33.75 consensus price target.

Insider and Institutional Ownership

The shares of both PagSeguro Digital Ltd. and X Financial are owned by institutional investors at 0% and 1.9% respectively.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
PagSeguro Digital Ltd. 3.23% -1.37% 20.14% 14.65% -13.75% 50.03%
X Financial 8% 4.45% 2.37% -23.19% 0% 26.46%

For the past year PagSeguro Digital Ltd. has stronger performance than X Financial

Summary

On 8 of the 9 factors PagSeguro Digital Ltd. beats X Financial.

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 acquires and sells point of sale (POS) devices and other products; and 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 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 administrators and 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 provides online gaming and cross-border digital services; and 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.

X Financial provides personal finance services in the People's Republic of China. The company offers a suite of products connecting borrowers and investors through a proprietary Internet platform. It provides loan products, which include Xiaoying card loan and Xiaoying preferred loan; and investment opportunities through wealth management platform, Xiaoying wealth management with insurance protection. X Financial was founded in 2014 and is headquartered in Shenzhen, the People's Republic of China.

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