Head to Head Analysis: Corpay (NYSE:CPAY) and PagSeguro Digital (NYSE:PAGS)

PagSeguro Digital (NYSE:PAGS) and Corpay (NYSE:CPAY) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Earnings and Valuation

This table compares PagSeguro Digital and Corpay”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PagSeguro Digital	$19.52 billion	0.18	$392.38 million	$1.29	8.07
Corpay	$3.97 billion	5.54	$1.00 billion	$14.73	21.35

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

Insider & Institutional Ownership

45.9% of PagSeguro Digital shares are owned by institutional investors. Comparatively, 98.8% of Corpay shares are owned by institutional investors. 5.0% of Corpay shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

PagSeguro Digital has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Corpay has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PagSeguro Digital	11.00%	15.39%	3.18%
Corpay	24.37%	37.83%	7.26%

Analyst Recommendations

This is a summary of current ratings and recommmendations for PagSeguro Digital and Corpay, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagSeguro Digital	0	4	5	0	2.56
Corpay	0	5	7	0	2.58

PagSeguro Digital presently has a consensus price target of $11.71, indicating a potential upside of 12.48%. Corpay has a consensus price target of $366.25, indicating a potential upside of 16.45%. Given Corpay’s stronger consensus rating and higher probable upside, analysts plainly believe Corpay is more favorable than PagSeguro Digital.

Summary

Corpay beats PagSeguro Digital on 12 of the 14 factors compared between the two stocks.

About PagSeguro Digital

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 Corpay

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.