PagSeguro Digital Ltd. (PAGS) vs Wix.com Ltd. (WIX)

PagSeguro Digital Ltd. and Wix.com Ltd. are both Software Infrastructure companies. Wix.com Ltd. is the larger, with a market value of $3.4B against $3.1B — 1.1× the size. Wix.com Ltd. has negative trailing earnings, so its P/E is not meaningful; PagSeguro Digital Ltd. trades at 7.7×. Wix.com Ltd. grew revenue faster over the last twelve months: 14.2% against 12.3%. PagSeguro Digital Ltd. has the higher net margin (10.5% vs −8.19%) and the higher return on invested capital (32.6% vs 0.00%). Across the 19 metrics below, PagSeguro Digital Ltd. leads on 13 and Wix.com Ltd. on 6.

Valuation

Metric PAGS WIX Software Infrastructure median
P/E 7.69 n/m 28.38
P/S 0.78 1.51 2.98
P/B 1.02 n/m 2.93
Price to free cash flow 4.26 7.93 16.28
EV/EBITDA 1.60 n/m 13.92
EV/Sales 0.79 1.83 2.90
Earnings yield 13.00% (4.71%) 0.14%
Free cash flow yield 23.48% 12.61% 1.24%

Profitability

Metric PAGS WIX Software Infrastructure median
Gross margin 53.30% 66.64% 61.00%
Operating margin 40.07% (9.77%) 0.00%
Net margin 10.47% (8.19%) 0.00%
Free cash flow margin 18.36% 19.30% 1.67%
Return on equity 14.69% 18.79% 0.60%
Return on assets 2.96% (9.08%) 0.00%
Return on invested capital 32.55% 0.00% 0.00%

Growth

Metric PAGS WIX Software Infrastructure median
Revenue growth (TTM) 12.27% 14.18% 13.41%
EPS growth (last fiscal year) 12.39% (62.71%) 27.10%
Revenue growth, 5-year CAGR 22.56% 15.15% 15.57%
Net income growth, 5-year CAGR 8.65% 0.00% 0.00%

Health

Metric PAGS WIX Software Infrastructure median
Debt to equity 0.10 (0.94) 0.05
Current ratio 1.55 0.61 1.55
Net debt to EBITDA 0.00 (1.63) 0.08

Dividend

Metric PAGS WIX Software Infrastructure median
Dividend yield 4.91% — 1.20%
Payout ratio 0.38 — 0.29

Size

Metric PAGS WIX Software Infrastructure median
Market cap 3.09b 3.40b 752.37m

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