Head-To-Head Contrast: DLocal (NASDAQ:DLO) & Mastercard (NYSE:MA)

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

Risk and Volatility

DLocal has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Mastercard has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Dividends

DLocal pays an annual dividend of $0.78 per share and has a dividend yield of 5.4%. Mastercard pays an annual dividend of $3.48 per share and has a dividend yield of 0.6%. DLocal pays out 123.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mastercard pays out 20.1% of its earnings in the form of a dividend. Mastercard has increased its dividend for 13 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and price targets for DLocal and Mastercard, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DLocal	0	1	6	1	3.00
Mastercard	1	1	20	8	3.17

DLocal currently has a consensus target price of $17.25, indicating a potential upside of 19.13%. Mastercard has a consensus target price of $653.92, indicating a potential upside of 20.31%. Given Mastercard’s stronger consensus rating and higher possible upside, analysts clearly believe Mastercard is more favorable than DLocal.

Institutional and Insider Ownership

90.1% of DLocal shares are owned by institutional investors. Comparatively, 97.3% of Mastercard shares are owned by institutional investors. 45.4% of DLocal shares are owned by company insiders. Comparatively, 0.1% of Mastercard 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.

Profitability

This table compares DLocal and Mastercard’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%
Mastercard	45.88%	212.96%	30.50%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DLocal	$1.21 billion	3.52	$196.80 million	$0.63	22.98
Mastercard	$33.94 billion	14.15	$14.97 billion	$17.28	31.46

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

Summary

Mastercard beats DLocal on 15 of the 18 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 Mastercard

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions. It also provides solutions that enable businesses or governments to make payments to businesses, including Virtual Card Number, which is generated dynamically from a physical card and leverages the credit limit of the funding account; a platform to optimize supplier payment enablement campaigns for financial institutions; and treasury intelligence platform that offers corporations with recommendations to enhance working capital performance and accelerate spend on cards. In addition, the company offers Mastercard Send, which partners with digital messaging and payment platforms to enable consumers to send money directly within applications to other consumers; and Mastercard Cross-Border Services enables a range of payment flows through a distribution network with a single point of access to send and receive money globally through various channels, including bank accounts, mobile wallets, cards, and cash payouts. Further, it provides cyber and intelligence solutions; insights and analytics, consulting, marketing, loyalty, processing, and payment gateway solutions for e-commerce merchants; and open banking and digital identity services. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus name. Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York.