Head to Head Review: Marqeta (NASDAQ:MQ) versus DLocal (NASDAQ:DLO)

Marqeta (NASDAQ:MQ) 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 dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

78.6% of Marqeta shares are owned by institutional investors. Comparatively, 90.1% of DLocal shares are owned by institutional investors. 12.6% of Marqeta shares are owned by company insiders. Comparatively, 45.4% of DLocal shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marqeta	0.33%	0.27%	0.15%
DLocal	15.85%	41.22%	14.27%

Valuation and Earnings

This table compares Marqeta and DLocal”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marqeta	$624.88 million	2.55	-$13.93 million	$0.01	376.00
DLocal	$1.09 billion	3.29	$196.80 million	$0.63	19.38

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Marqeta and DLocal, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marqeta	2	8	1	0	1.91
DLocal	0	2	5	1	2.88

Marqeta presently has a consensus target price of $5.22, indicating a potential upside of 38.80%. DLocal has a consensus target price of $16.63, indicating a potential upside of 36.16%. Given Marqeta’s higher possible upside, analysts plainly believe Marqeta is more favorable than DLocal.

Risk & Volatility

Marqeta has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, DLocal has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Summary

DLocal beats Marqeta on 12 of the 15 factors compared between the two stocks.

About Marqeta

Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.

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.