Analyzing PagSeguro Digital (NYSE:PAGS) and ChinaCache International (NYSE:CCIH)

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

Analyst Recommendations

This is a breakdown of current ratings for PagSeguro Digital and ChinaCache International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PagSeguro Digital 1 1 9 0 2.73
ChinaCache International 0 0 0 0 N/A

PagSeguro Digital presently has a consensus target price of $37.11, indicating a potential downside of 18.69%. Given PagSeguro Digital’s higher probable upside, equities analysts clearly believe PagSeguro Digital is more favorable than ChinaCache International.

Institutional & Insider Ownership

15.6% of ChinaCache International shares are held by institutional investors. 13.7% of ChinaCache International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares PagSeguro Digital and ChinaCache International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PagSeguro Digital $1.14 billion 13.14 $248.78 million $0.88 51.86
ChinaCache International $131.04 million 0.18 -$56.74 million N/A N/A

PagSeguro Digital has higher revenue and earnings than ChinaCache International.

Profitability

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

Net Margins Return on Equity Return on Assets
PagSeguro Digital 23.00% 18.15% 10.83%
ChinaCache International N/A N/A N/A

Summary

PagSeguro Digital beats ChinaCache International on 8 of the 10 factors compared between the two stocks.

PagSeguro Digital Company Profile

PagSeguro Digital Ltd. provides financial technology solutions and services for micro-merchants, and small and medium-sized businesses in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, an end-to-end 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; and Free PagSeguro digital account, which centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem. It also offers online gaming and cross-border digital services. In addition, the company offers functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, eWallet, and its (point of sale) POS 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. Additionally, the company engages in the in-person payment activities through POS devices; and issuance of prepaid cards to clients for spending or withdrawing account balances. It also operates an online platform that facilitates peer-to-peer lending. The company was founded in 2006 and is headquartered in São Paulo, Brazil. PagSeguro Digital Ltd. is a subsidiary of Universo Online S.A.

ChinaCache International Company Profile

ChinaCache International Holdings Ltd., an investment holding company, provides content and application delivery services in the People's Republic of China. The company offers a portfolio of services and solutions to businesses, government agencies, and other enterprises to enhance the reliability and scalability of their online services and applications. Its services include Web page content, file transfer, and rich media streaming services; and guaranteed application services for Websites that have various features, such as online booking and ordering, real-time stock quotes, and online surveys. It also provides managed Internet data services for content and application delivery, and network infrastructure and security; ChinaCache cloud services that provide computing environment and storage; content bridging services for mobile telecommunications carriers; Internet exchange and data center services; and mobile Internet solutions. In addition, the company offers various value-added services, such as geo-content acceleration service, performance evaluation modules, scalable service routing service, link anti-hijack service, netstorage service, user behavior analysis service, Website performance evaluation service, all-around application acceleration solution, and cloud extension solution. Its value-added services also include CC Index, an analytics platform that provides Internet users real-time data; and file aware download, which provides CDN technology, end-user control ability, a customizable user interface, and insight into download analytics and content usage information. Further, the company provides technical consultation services; constructs cloud infrastructure; and leases mechanical equipment. Additionally, it engages in computer hardware and technology development; and real estate management businesses. The company was founded in 1998 and is headquartered in Beijing, the People's Republic of China.

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