Euronet Worldwide, Inc. (EEFT) vs PagSeguro Digital Ltd. (PAGS)

Euronet Worldwide, Inc. and PagSeguro Digital Ltd. are both Software Infrastructure companies. Euronet Worldwide, Inc. is the larger, with a market value of $2.5B against $2.1B — 1.2× the size. PagSeguro Digital Ltd. trades at the lower P/E: 5.4× against 9.5×. PagSeguro Digital Ltd. grew revenue faster over the last twelve months: 12.3% against 4.95%. PagSeguro Digital Ltd. has the higher net margin (10.5% vs 6.38%) and the higher return on invested capital (32.6% vs 18.9%). Across the 22 metrics below, PagSeguro Digital Ltd. leads on 21 and Euronet Worldwide, Inc. on 1.

Valuation

Metric EEFT PAGS Software Infrastructure median
P/E 9.45 5.38 26.15
P/S 0.57 0.55 2.87
P/B 2.01 0.72 2.94
Price to free cash flow 9.26 2.98 17.26
EV/EBITDA 4.22 1.13 15.00
EV/Sales 0.64 0.55 2.95
Earnings yield 10.58% 18.57% 0.00%
Free cash flow yield 10.80% 33.54% 0.39%

Profitability

Metric EEFT PAGS Software Infrastructure median
Gross margin 41.25% 53.30% 59.21%
Operating margin 10.97% 40.07% 0.00%
Net margin 6.38% 10.47% 0.00%
Free cash flow margin 0.00% 18.36% 0.00%
Return on equity 0.00% 14.69% 0.00%
Return on assets 4.54% 2.96% 0.00%
Return on invested capital 18.94% 32.55% 0.00%

Growth

Metric EEFT PAGS Software Infrastructure median
Revenue growth (TTM) 4.95% 12.27% 13.57%
EPS growth (last fiscal year) 6.05% 12.39% 20.22%
Revenue growth, 5-year CAGR 11.32% 22.56% 16.02%
Net income growth, 5-year CAGR 0.00% 8.65% 0.00%

Health

Metric EEFT PAGS Software Infrastructure median
Debt to equity 1.67 0.10 0.02
Current ratio 1.42 1.55 1.54
Net debt to EBITDA 0.46 0.00 0.05

Dividend

Metric EEFT PAGS Software Infrastructure median
Dividend yield — 7.01% 1.09%
Payout ratio — 0.38 0.30

Size

Metric EEFT PAGS Software Infrastructure median
Market cap 2.48b 2.12b 655.75m

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