Head to Head Survey: QC (QCCO) & Net 1 UEPS Technologies (UEPS)

Net 1 UEPS Technologies (NASDAQ:UEPS) and QC (OTCMKTS:QCCO) are both small-cap industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Volatility & Risk

Net 1 UEPS Technologies has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, QC has a beta of 2.51, indicating that its share price is 151% more volatile than the S&P 500.

Institutional and Insider Ownership

52.1% of Net 1 UEPS Technologies shares are owned by institutional investors. 3.5% of Net 1 UEPS Technologies shares are owned by company insiders. Comparatively, 63.4% of QC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Net 1 UEPS Technologies $612.89 million 0.45 $39.15 million N/A N/A
QC $98.21 million 0.10 -$3.54 million N/A N/A

Net 1 UEPS Technologies has higher revenue and earnings than QC.

Profitability

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

Net Margins Return on Equity Return on Assets
Net 1 UEPS Technologies 2.47% 10.61% 6.72%
QC -4.96% N/A N/A

Analyst Recommendations

This is a breakdown of current recommendations for Net 1 UEPS Technologies and QC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Net 1 UEPS Technologies 0 0 3 0 3.00
QC 0 0 0 0 N/A

Net 1 UEPS Technologies presently has a consensus price target of $15.00, suggesting a potential upside of 209.92%. Given Net 1 UEPS Technologies’ higher probable upside, analysts plainly believe Net 1 UEPS Technologies is more favorable than QC.

Summary

Net 1 UEPS Technologies beats QC on 9 of the 11 factors compared between the two stocks.

About Net 1 UEPS Technologies

Net 1 UEPS Technologies, Inc. provides transaction processing services, financial inclusion products and services, and secure payment technologies in South Africa, the Republic of Korea, and internationally. The company develops and markets transaction processing solutions, including smart card-based alternative payment systems for the unbanked and under-banked populations of developing economies and for mobile transaction channels. It operates through three segments: South African Transaction Processing, International Transaction Processing, and Financial Inclusion and Applied Technologies. The South African Transaction Processing segment primarily offers welfare benefit distribution services for the South African government; and transaction processing for retailers, utilities, and banks. The International Transaction Processing segment offers payment processing services to merchants and card issuers. The Financial Inclusion and Applied Technologies segment provides short-term loans and bank accounts. It also sells prepaid products, such as electricity and airtime, hardware and software, and life insurance products. In addition, this segment distributes mobile subscriber starter packs; and provides financing and project management services to develop and maintain a tower network, as well as operates Money4Jam, a micro-jobbing platform that connects companies and job-seekers for the completion of micro-jobs through mobile phone technology. The company was founded in 1989 and is headquartered in Johannesburg, South Africa.

About QC

QC Holdings, Inc. and its subsidiaries provide various financial services. The company operates through three segments: Branch Lending, Centralized Lending, and E-Lending. The Branch Lending segment offers payday loans, installment loans, credit services, open-end credit, check cashing services, title loans, debit cards, money transfers, and money orders through its retail branches. The Centralized Lending segment provides long-term installment loans comprising signature and auto equity loans. The E-Lending segment is involved in the Internet lending operations in the United States and Canada. As of December 31, 2014, it operated 409 branches with locations in Alabama, Arizona, California, Colorado, Idaho, Illinois, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Nevada, New Mexico, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin. QC Holdings, Inc. was founded in 1984 and is headquartered in Overland Park, Kansas.

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