PagSeguro Digital Ltd. (PAGS) vs Teradata Corporation (TDC)

PagSeguro Digital Ltd. and Teradata Corporation are both Software Infrastructure companies. PagSeguro Digital Ltd. and Teradata Corporation are of similar size ($2.7B and $2.5B). Teradata Corporation trades at the lower P/E: 5.9× against 6.3×. PagSeguro Digital Ltd. grew revenue faster over the last twelve months: 12.3% against 0.96%. Teradata Corporation has the higher net margin (27.1% vs 10.5%) and the higher return on invested capital (35.4% vs 32.6%). Across the 22 metrics below, PagSeguro Digital Ltd. leads on 12 and Teradata Corporation on 10.

Valuation

Metric PAGS TDC Software Infrastructure median
P/E 6.33 5.89 28.02
P/S 0.64 1.61 3.07
P/B 0.84 4.58 3.36
Price to free cash flow 3.50 3.70 17.12
EV/EBITDA 1.32 10.69 14.91
EV/Sales 0.65 1.40 3.03
Earnings yield 15.80% 16.97% 0.13%
Free cash flow yield 28.53% 27.01% 1.15%

Profitability

Metric PAGS TDC Software Infrastructure median
Gross margin 53.30% 60.79% 61.23%
Operating margin 40.07% 7.51% 0.00%
Net margin 10.47% 27.08% 0.00%
Free cash flow margin 18.36% 43.41% 1.67%
Return on equity 14.69% 119.12% 0.59%
Return on assets 2.96% 26.98% 0.00%
Return on invested capital 32.55% 35.44% 0.00%

Growth

Metric PAGS TDC Software Infrastructure median
Revenue growth (TTM) 12.27% 0.96% 13.41%
EPS growth (last fiscal year) 12.39% 16.38% —
Revenue growth, 5-year CAGR 22.56% (1.96%) 15.81%
Net income growth, 5-year CAGR 8.65% 0.15% 0.00%

Health

Metric PAGS TDC Software Infrastructure median
Debt to equity 0.10 0.08 0.06
Current ratio 1.55 0.91 1.55
Net debt to EBITDA 0.00 0.03 0.08

Dividend

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

Size

Metric PAGS TDC Software Infrastructure median
Market cap 2.51b 2.74b 835.96m

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