PagSeguro Digital Ltd. (PAGS) vs Payoneer Global Inc. (PAYO)

PagSeguro Digital Ltd. and Payoneer Global Inc. are both Software Infrastructure companies. PagSeguro Digital Ltd. and Payoneer Global Inc. are of similar size ($2.5B and $2.4B). PagSeguro Digital Ltd. trades at the lower P/E: 6.3× against 50.2×. PagSeguro Digital Ltd. grew revenue faster over the last twelve months: 12.3% against 6.31%. PagSeguro Digital Ltd. has the higher net margin (10.5% vs 4.65%) and the higher return on invested capital (32.6% vs 23.2%). Across the 22 metrics below, PagSeguro Digital Ltd. leads on 18 and Payoneer Global Inc. on 4.

Valuation

Metric PAGS PAYO Software Infrastructure median
P/E 6.33 50.21 28.02
P/S 0.64 2.24 3.07
P/B 0.84 3.70 3.36
Price to free cash flow 3.50 20.89 17.12
EV/EBITDA 1.32 11.08 14.91
EV/Sales 0.65 1.93 3.03
Earnings yield 15.80% 1.99% 0.13%
Free cash flow yield 28.53% 4.79% 1.15%

Profitability

Metric PAGS PAYO Software Infrastructure median
Gross margin 53.30% 100.00% 61.23%
Operating margin 40.07% 10.38% 0.00%
Net margin 10.47% 4.65% 0.00%
Free cash flow margin 18.36% 10.71% 1.67%
Return on equity 14.69% 7.06% 0.59%
Return on assets 2.96% 0.60% 0.00%
Return on invested capital 32.55% 23.19% 0.00%

Growth

Metric PAGS PAYO Software Infrastructure median
Revenue growth (TTM) 12.27% 6.31% 13.41%
EPS growth (last fiscal year) 12.39% (38.71%) —
Revenue growth, 5-year CAGR 22.56% 24.96% 15.81%
Net income growth, 5-year CAGR 8.65% 0.00% 0.00%

Health

Metric PAGS PAYO Software Infrastructure median
Debt to equity 0.10 0.00 0.06
Current ratio 1.55 1.00 1.55
Net debt to EBITDA 0.00 (2.22) 0.08

Dividend

Metric PAGS PAYO Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric PAGS PAYO Software Infrastructure median
Market cap 2.51b 2.42b 835.96m

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