Moneygram International (NASDAQ: MGI) and Net 1 UEPS Technologies (NASDAQ:UEPS) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

93.9% of Moneygram International shares are owned by institutional investors. Comparatively, 56.1% of Net 1 UEPS Technologies shares are owned by institutional investors. 49.5% of Moneygram International shares are owned by insiders. Comparatively, 3.2% of Net 1 UEPS Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Moneygram International and Net 1 UEPS Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Moneygram International 2.03% -14.11% 1.22%
Net 1 UEPS Technologies 11.96% 14.06% 7.24%

Earnings & Valuation

This table compares Moneygram International and Net 1 UEPS Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Moneygram International $1.63 billion 0.53 $226.70 million $0.48 32.92
Net 1 UEPS Technologies $610.07 million 0.84 $148.02 million $1.35 6.78

Moneygram International has higher revenue and earnings than Net 1 UEPS Technologies. Net 1 UEPS Technologies is trading at a lower price-to-earnings ratio than Moneygram International, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Moneygram International has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500. Comparatively, Net 1 UEPS Technologies has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Moneygram International and Net 1 UEPS Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moneygram International 1 4 0 0 1.80
Net 1 UEPS Technologies 0 0 0 0 N/A

Moneygram International currently has a consensus price target of $16.21, suggesting a potential upside of 2.62%. Given Moneygram International’s higher probable upside, analysts clearly believe Moneygram International is more favorable than Net 1 UEPS Technologies.

Summary

Moneygram International beats Net 1 UEPS Technologies on 7 of the 12 factors compared between the two stocks.

About Moneygram International

MoneyGram International, Inc. (MoneyGram) is a global provider of money transfer services. The Company operates through two segments: Global Funds Transfer and Financial Paper Products. The Company offers its services under the MoneyGram brand. The Company’s Global Funds Transfer Segment provides money transfer services and bill payment services primarily to unbanked and underbanked consumers. The Financial Paper Products Segment provides money orders to consumers through its agents and financial institutions located across the United States and Puerto Rico. The Company’s offerings include money transfers, bill payment services, money order services and official check processing. The Company’s money transfer services enable its consumers to send and receive funds across the world through its global network of locations. The Company also offers Digital/Self-Service solutions, such as moneygram.com, mobile solutions, account deposit and kiosk-based services.

About Net 1 UEPS Technologies

Net 1 UEPS Technologies, Inc. is a provider of payment solutions, transaction processing services and financial technology across multiple industries. The Company develops and markets a transaction processing solution that encompasses its smart card-based alternative payment system for the unbanked and under-banked populations of developing economies and for mobile transaction channels. The Company operates through three segments: South African transaction processing, International transaction processing, and Financial inclusion and applied technologies. The Company also provides secure transaction technology solutions and services, by offering transaction processing, financial and clinical risk management solutions to various industries. It offers secure online transaction processing, cryptography, mobile telephony, integrated circuit card (chip/smart card) technologies, and the design and provision of financial and value-added services to its cardholder base.

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