DLocal (NASDAQ:DLO) and Joint Stock Company Kaspi.kz (NASDAQ:KSPI) Head to Head Contrast

Joint Stock Company Kaspi.kz (NASDAQ:KSPI) and DLocal (NASDAQ:DLO) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Valuation and Earnings

This table compares Joint Stock Company Kaspi.kz and DLocal”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Joint Stock Company Kaspi.kz	$4.82 billion	2.95	$2.18 billion	$11.09	6.44
DLocal	$745.97 million	5.18	$120.42 million	$0.56	22.09

Joint Stock Company Kaspi.kz has higher revenue and earnings than DLocal. Joint Stock Company Kaspi.kz 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 breakdown of recent ratings and target prices for Joint Stock Company Kaspi.kz and DLocal, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Joint Stock Company Kaspi.kz	0	3	2	0	2.40
DLocal	0	5	5	1	2.64

Joint Stock Company Kaspi.kz presently has a consensus target price of $111.00, indicating a potential upside of 55.52%. DLocal has a consensus target price of $15.67, indicating a potential upside of 26.65%. Given Joint Stock Company Kaspi.kz’s higher probable upside, research analysts clearly believe Joint Stock Company Kaspi.kz is more favorable than DLocal.

Profitability

This table compares Joint Stock Company Kaspi.kz and DLocal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Joint Stock Company Kaspi.kz	30.35%	55.31%	11.20%
DLocal	17.80%	37.66%	14.84%

Insider and Institutional Ownership

32.2% of Joint Stock Company Kaspi.kz shares are held by institutional investors. Comparatively, 90.1% of DLocal shares are held by institutional investors. 45.4% of DLocal shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Joint Stock Company Kaspi.kz has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, DLocal has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Summary

DLocal beats Joint Stock Company Kaspi.kz on 9 of the 15 factors compared between the two stocks.

About Joint Stock Company Kaspi.kz

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform. The Payments Platform segment facilities transactions between customers and merchants. This segment offers shopping transactions, regular household bills, and peer to peer payments for consumers; accepts payment online and in store, issue and settle invoices, pay suppliers and monitor merchant turnover. It also provides proprietary data facilities informed decision making across multiple areas of business. Its Marketplace Platform segment connects online, and offline merchants and consumers enabling merchants to enhance its sales through an omni channel strategy and enable consumers to buy products and services from various merchants. This segment also operates marketplace through m-commerce, a mobile solution for shopping in person which consumers can use e-commerce to shop anywhere, anytime with free delivery; Kaspi Travel allows consumers to book domestic and international flights and package holidays, domestic rail tickets. It also enhances merchants sales by connecting payments and fintech products, Kapsi advertising, and other delivery services. The Fintech Platform segment provides consumers with BNPL, finance, and savings products and merchants with merchant finance services through super apps and Kapsi.kz Super app. It also involved in the banking; distressed asset management; real estate business; payment processing; online travel; and storage and processing of information services. The company was incorporated in 2008 and is headquartered in Almaty, the Republic of Kazakhstan.

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.