Comparing DLocal (NASDAQ:DLO) & Corpay (NYSE:CPAY)

DLocal (NASDAQ:DLO) and Corpay (NYSE:CPAY) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Volatility & Risk

DLocal has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Corpay has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Profitability

This table compares DLocal and Corpay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DLocal	17.80%	37.66%	14.84%
Corpay	23.62%	37.13%	6.76%

Earnings and Valuation

This table compares DLocal and Corpay”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DLocal	$745.97 million	5.01	$120.42 million	$0.56	21.38
Corpay	$4.53 billion	5.22	$1.07 billion	$15.04	22.45

Corpay has higher revenue and earnings than DLocal. DLocal is trading at a lower price-to-earnings ratio than Corpay, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for DLocal and Corpay, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DLocal	0	4	6	1	2.73
Corpay	0	5	10	0	2.67

DLocal currently has a consensus price target of $16.40, indicating a potential upside of 37.01%. Corpay has a consensus price target of $379.79, indicating a potential upside of 12.48%. Given DLocal’s stronger consensus rating and higher probable upside, equities research analysts clearly believe DLocal is more favorable than Corpay.

Institutional and Insider Ownership

90.1% of DLocal shares are owned by institutional investors. Comparatively, 98.8% of Corpay shares are owned by institutional investors. 45.4% of DLocal shares are owned by insiders. Comparatively, 5.0% of Corpay shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Corpay beats DLocal on 8 of the 15 factors compared between the two stocks.

About DLocal

DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods. It also provides pay-out solution used for merchants to scale pay-out operations. In addition, the company offers dLocal for Platforms, an end-to-end payment solution that offers a range of services to help platforms manage payments. It serves its products to commerce, streaming, ride-hailing, financial services, advertising, SaaS, travel, e-learning, on-demand delivery, and gaming and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.

About Corpay

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.