PagSeguro Digital (NYSE:PAGS) & Corpay (NYSE:CPAY) Head-To-Head Comparison

Corpay (NYSE:CPAY) and PagSeguro Digital (NYSE:PAGS) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Corpay	24.37%	37.83%	7.26%
PagSeguro Digital	11.00%	15.39%	3.18%

Institutional & Insider Ownership

98.8% of Corpay shares are held by institutional investors. Comparatively, 45.9% of PagSeguro Digital shares are held by institutional investors. 5.0% of Corpay shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Corpay has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Corpay and PagSeguro Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corpay	0	5	7	0	2.58
PagSeguro Digital	0	4	5	0	2.56

Corpay presently has a consensus target price of $366.25, indicating a potential upside of 14.16%. PagSeguro Digital has a consensus target price of $11.71, indicating a potential upside of 6.74%. Given Corpay’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Corpay is more favorable than PagSeguro Digital.

Valuation & Earnings

This table compares Corpay and PagSeguro Digital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corpay	$3.97 billion	5.65	$1.00 billion	$14.73	21.78
PagSeguro Digital	$3.22 billion	N/A	$392.38 million	$1.29	8.51

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

Summary

Corpay beats PagSeguro Digital on 12 of the 13 factors compared between the two stocks.

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.

About PagSeguro Digital

PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, a digital ecosystem that operates as a closed loop where its clients are able to address their primary day to day financial needs, including receiving and spending funds, and managing and growing their businesses; PagBank digital account, which offers payment and banking services through the PagBank mobile app, as well as centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem; and PlugPag, a tool for medium-sized and larger merchants that enables them to connect their point of sale (POS) device directly to their enterprise resource planning software or sales automation system through Bluetooth. It also offers cash-in solutions; online and in-person payment tools; and online gaming and cross-border digital services, as well as issues prepaid, credit, and cash cards. In addition, the company provides functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, POS app, i-Banking App, Super App, and e-commerce support and bill payment services; and PedeFácil, an order management and food delivery app. Further, it is involved in processing of back-office solutions, including sales reconciliation, and gateway solutions and services, as well as the capture of credit cards with acquirers and sub acquirers. The company was founded in 2006 and is headquartered in São Paulo, Brazil.