Financial Contrast: Usio (NASDAQ:USIO) vs. Lesaka Technologies (NASDAQ:LSAK)

Lesaka Technologies (NASDAQ:LSAK) and Usio (NASDAQ:USIO) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Lesaka Technologies and Usio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lesaka Technologies	0.43%	1.65%	0.46%
Usio	-1.63%	-8.20%	-1.26%

Analyst Recommendations

This is a breakdown of current ratings for Lesaka Technologies and Usio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lesaka Technologies	0	2	0	1	2.67
Usio	0	2	2	0	2.50

Lesaka Technologies currently has a consensus price target of $7.56, suggesting a potential upside of 89.47%. Usio has a consensus price target of $5.38, suggesting a potential upside of 84.08%. Given Lesaka Technologies’ stronger consensus rating and higher probable upside, equities analysts plainly believe Lesaka Technologies is more favorable than Usio.

Valuation and Earnings

This table compares Lesaka Technologies and Usio”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lesaka Technologies	$721.55 million	0.47	$2.76 million	$0.04	99.75
Usio	$85.39 million	0.97	-$2.51 million	($0.06)	-48.67

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

Risk and Volatility

Lesaka Technologies has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Usio has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Insider & Institutional Ownership

24.2% of Lesaka Technologies shares are held by institutional investors. Comparatively, 20.2% of Usio shares are held by institutional investors. 6.0% of Lesaka Technologies shares are held by company insiders. Comparatively, 19.0% of Usio shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Lesaka Technologies beats Usio on 11 of the 15 factors compared between the two stocks.

About Lesaka Technologies

Lesaka Technologies, Inc. operates as a Fintech company that utilizes its proprietary banking and payment technologies to deliver financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. It offers cash management solutions, growth capital, card acquiring, bill payment technologies, and value-added services to formal and informal retail merchants, as well as banking, lending, and insurance solutions to consumers across Southern Africa. The company also engages in the sale of POS devices, SIM cards, and other consumables; and license of rights to use certain technology developed by the company, as well as offers related technology services. The company was formerly known as Net 1 UEPS Technologies, Inc. and changed its name to Lesaka Technologies, Inc. in May 2022. Lesaka Technologies, Inc. was incorporated in 1997 and is headquartered in Johannesburg, South Africa.

About Usio

Usio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing; and credit, prepaid card, and debit card-based processing services. Its ACH transaction processing services include Represented Check and Check Conversion for electronic payment facilitation. In addition, the company offers merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a website or retail services accessed through a physical terminal. Further, it provides a proprietary web-based customer service application that allows companies to process one-time and recurring payments through e-checks or credit cards; and an interactive voice response telephone system to companies, which accept payments directly from consumers over the telephone using e-checks or credit cards. Additionally, the company offers prepaid and incentive card issuance services; and operates a prepaid core processing platform, as well as provides additional services, such as electronic bill presentment, document composition, document decomposition, and printing and mailing services for various industry verticals, including utilities and financial institutions. It markets and sells ACH products and services primarily through resellers; and prepaid card program directly to government entities, corporations, and to consumers through the internet. The company was formerly known as Payment Data Systems, Inc. and changed its name to Usio, Inc. in June 2019. Usio, Inc. was incorporated in 1998 and is headquartered in San Antonio, Texas.