Comparing Lesaka Technologies (LSAK) & The Competition

Lesaka Technologies (NASDAQ:LSAK) is one of 334 publicly-traded companies in the “Financial Services” industry, but how does it compare to its peers? We will compare Lesaka Technologies to similar businesses based on the strength of its earnings, risk, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Valuation & Earnings

This table compares Lesaka Technologies and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lesaka Technologies	$721.55 million	$2.76 million	83.00
Lesaka Technologies Competitors	$6.95 billion	$1.14 billion	10.19

Lesaka Technologies’ peers have higher revenue and earnings than Lesaka Technologies. Lesaka Technologies is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

24.2% of Lesaka Technologies shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Financial Services” companies are owned by institutional investors. 6.0% of Lesaka Technologies shares are owned by company insiders. Comparatively, 21.9% of shares of all “Financial Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Lesaka Technologies and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lesaka Technologies	1	1	0	1	2.33
Lesaka Technologies Competitors	1926	6942	11705	447	2.51

Lesaka Technologies presently has a consensus target price of $7.56, indicating a potential upside of 127.71%. As a group, “Financial Services” companies have a potential downside of 4.95%. Given Lesaka Technologies’ higher possible upside, analysts plainly believe Lesaka Technologies is more favorable than its peers.

Risk and Volatility

Lesaka Technologies has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, Lesaka Technologies’ peers have a beta of 2.55, meaning that their average share price is 155% more volatile than the S&P 500.

Profitability

This table compares Lesaka Technologies and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lesaka Technologies	0.44%	4.93%	1.39%
Lesaka Technologies Competitors	-259.04%	-39.95%	-4.73%

Summary

Lesaka Technologies peers beat Lesaka Technologies on 7 of the 13 factors compared.

Lesaka Technologies Company Profile

Lesaka Technologies is a fintech company that provides digital payment and financial services, primarily in South Africa and other markets in Southern Africa. Its platform connects consumers, merchants and other businesses with payment tools and related financial products. The company’s consumer services include transaction accounts, payments, lending and insurance, while its merchant solutions include payment acceptance, point-of-sale technology and related business services. Lesaka serves individuals and businesses that may have limited access to traditional financial services.