Verisk Analytics (NASDAQ:VRSK) and PagSeguro Digital (NYSE:PAGS) are both large-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.
Analyst Recommendations
This is a summary of current ratings and target prices for Verisk Analytics and PagSeguro Digital, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Verisk Analytics | 0 | 3 | 8 | 0 | 2.73 |
PagSeguro Digital | 0 | 1 | 10 | 0 | 2.91 |
Verisk Analytics currently has a consensus target price of $199.00, suggesting a potential upside of 6.27%. PagSeguro Digital has a consensus target price of $59.50, suggesting a potential upside of 31.64%. Given PagSeguro Digital's stronger consensus rating and higher possible upside, analysts plainly believe PagSeguro Digital is more favorable than Verisk Analytics.
Insider and Institutional Ownership
88.2% of Verisk Analytics shares are held by institutional investors. Comparatively, 58.5% of PagSeguro Digital shares are held by institutional investors. 2.6% of Verisk Analytics shares are held by company 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.
Earnings & Valuation
This table compares Verisk Analytics and PagSeguro Digital's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Verisk Analytics | $2.61 billion | 11.66 | $449.90 million | $4.38 | 42.75 |
PagSeguro Digital | $1.39 billion | 10.68 | $346.04 million | $1.08 | 41.85 |
Verisk Analytics has higher revenue and earnings than PagSeguro Digital. PagSeguro Digital is trading at a lower price-to-earnings ratio than Verisk Analytics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Verisk Analytics and PagSeguro Digital's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Verisk Analytics | 19.12% | 36.42% | 11.46% |
PagSeguro Digital | 21.01% | 8.33% | 8.95% |
Risk & Volatility
Verisk Analytics has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500.
Summary
Verisk Analytics beats PagSeguro Digital on 9 of the 14 factors compared between the two stocks.