Worldline (OTCMKTS:WWLNF) versus DLocal (NASDAQ:DLO) Critical Analysis

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worldline	0	2	0	1	2.67
DLocal	0	7	2	0	2.22

DLocal has a consensus price target of $12.50, suggesting a potential upside of 43.35%. Given DLocal’s higher possible upside, analysts plainly believe DLocal is more favorable than Worldline.

Volatility & Risk

Worldline has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, DLocal has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worldline	$4.99 billion	N/A	-$884.49 million	N/A	N/A
DLocal	$707.64 million	3.65	$148.96 million	$0.44	19.82

DLocal has lower revenue, but higher earnings than Worldline.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Worldline	N/A	N/A	N/A
DLocal	18.76%	34.35%	13.95%

Institutional & Insider Ownership

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

Summary

DLocal beats Worldline on 9 of the 12 factors compared between the two stocks.

About Worldline

Worldline SA provides payments and transactional services to financial institutions, merchants, corporations, and government agencies in Northern Europe, Central and Eastern Europe, Southern Europe, and internationally. The company operates through Merchant Services; Financial Services; and Mobility & e-Transactional Services segments. The Merchant Services segment offers commercial acquiring, terminal, omnichannel payment acceptance, and digital retail services. The Financial Services segment provides issuing processing, acquiring processing, digital banking, and account payments services. The Mobility & e-Transactional Services segment offers trusted digitization, e-ticketing, and e-consumer and mobility. The company was formerly known as Atos Worldline S.A.S. and changed its name to Worldline SA in April 2014. Worldline SA was founded in 1973 and is headquartered in Puteaux, France.

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.