Chime Financial (NASDAQ:CHYM) & DLocal (NASDAQ:DLO) Head-To-Head Analysis

Chime Financial (NASDAQ:CHYM) and DLocal (NASDAQ:DLO) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Risk & Volatility

Chime Financial has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, DLocal has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chime Financial	-0.74%	-1.28%	-0.92%
DLocal	15.04%	41.64%	12.96%

Institutional & Insider Ownership

90.1% of DLocal shares are owned by institutional investors. 12.3% of Chime Financial shares are owned by insiders. Comparatively, 45.4% of DLocal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Chime Financial and DLocal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chime Financial	$2.19 billion	4.65	-$1.01 billion	($0.07)	-383.40
DLocal	$1.09 billion	3.70	$196.80 million	$0.67	20.46

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Chime Financial and DLocal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chime Financial	1	2	16	3	2.95
DLocal	0	1	5	0	2.83

Chime Financial currently has a consensus target price of $36.53, suggesting a potential upside of 36.10%. DLocal has a consensus target price of $19.20, suggesting a potential upside of 40.07%. Given DLocal’s higher possible upside, analysts plainly believe DLocal is more favorable than Chime Financial.

Summary

DLocal beats Chime Financial on 10 of the 15 factors compared between the two stocks.

About Chime Financial

Chime is a financial technology company that partners with federally regulated, FDIC-insured banks—The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC—to provide consumer banking products and services. The company’s model is designed to eliminate common fees and simplify access to basic financial services.

Chime does not charge overdraft fees, monthly service fees, or require minimum balances. All account balances are held at partner banks and protected by applicable regulatory safeguards to ensure funds remain secure and accessible.

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.