DLocal (NASDAQ:DLO) versus Marqeta (NASDAQ:MQ) Financial Survey

DLocal (NASDAQ:DLO) and Marqeta (NASDAQ:MQ) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Insider & Institutional Ownership

90.1% of DLocal shares are owned by institutional investors. Comparatively, 78.6% of Marqeta shares are owned by institutional investors. 45.4% of DLocal shares are owned by company insiders. Comparatively, 12.6% of Marqeta shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares DLocal and Marqeta”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DLocal	$1.09 billion	3.45	$196.80 million	$0.63	20.30
Marqeta	$624.88 million	2.63	-$13.93 million	$0.01	388.00

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for DLocal and Marqeta, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DLocal	0	2	5	1	2.88
Marqeta	2	8	1	0	1.91

DLocal presently has a consensus price target of $16.63, indicating a potential upside of 29.98%. Marqeta has a consensus price target of $5.22, indicating a potential upside of 34.50%. Given Marqeta’s higher probable upside, analysts plainly believe Marqeta is more favorable than DLocal.

Profitability

This table compares DLocal and Marqeta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DLocal	15.85%	41.22%	14.27%
Marqeta	0.33%	0.27%	0.15%

Risk & Volatility

DLocal has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Marqeta has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Summary

DLocal beats Marqeta on 12 of the 15 factors compared between the two stocks.

About DLocal

DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods. It also provides pay-out solution used for merchants to scale pay-out operations. In addition, the company offers dLocal for Platforms, an end-to-end payment solution that offers a range of services to help platforms manage payments. It serves its products to commerce, streaming, ride-hailing, financial services, advertising, SaaS, travel, e-learning, on-demand delivery, and gaming and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.

About Marqeta

Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.