Financial Survey: Worldline (OTCMKTS:WWLNF) vs. DLocal (NASDAQ:DLO)

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

Insider and Institutional Ownership

90.1% of DLocal shares are owned by institutional investors. 45.4% of DLocal shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

DLocal has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Worldline has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DLocal	18.76%	34.35%	13.95%
Worldline	N/A	N/A	N/A

Valuation & Earnings

This table compares DLocal and Worldline”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DLocal	$707.64 million	3.76	$148.96 million	$0.44	20.45
Worldline	$4.99 billion	N/A	-$884.49 million	N/A	N/A

DLocal has higher earnings, but lower revenue than Worldline.

Analyst Ratings

This is a summary of current ratings and price targets for DLocal and Worldline, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DLocal	0	7	2	0	2.22
Worldline	0	2	0	1	2.67

DLocal presently has a consensus target price of $12.50, indicating a potential upside of 38.89%. Given DLocal’s higher probable upside, analysts clearly believe DLocal is more favorable than Worldline.

Summary

DLocal beats Worldline on 9 of the 12 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 Worldline

Worldline SA provides payments and transactional services to financial institutions, merchants, corporations, and government agencies in Northern Europe, Central and Eastern Europe, Southern Europe, and internationally. The company operates through Merchant Services; Financial Services; and Mobility & e-Transactional Services segments. The Merchant Services segment offers commercial acquiring, terminal, omnichannel payment acceptance, and digital retail services. The Financial Services segment provides issuing processing, acquiring processing, digital banking, and account payments services. The Mobility & e-Transactional Services segment offers trusted digitization, e-ticketing, and e-consumer and mobility. The company was formerly known as Atos Worldline S.A.S. and changed its name to Worldline SA in April 2014. Worldline SA was founded in 1973 and is headquartered in Puteaux, France.