Upwork (NASDAQ:UPWK) vs. PagSeguro Digital (NYSE:PAGS) Critical Comparison

Upwork (NASDAQ:UPWK) and PagSeguro Digital (NYSE:PAGS) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Upwork	10.00%	20.75%	7.42%
PagSeguro Digital	10.93%	14.97%	3.56%

Earnings and Valuation

This table compares Upwork and PagSeguro Digital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Upwork	$689.14 million	2.00	$46.89 million	$0.35	29.86
PagSeguro Digital	$9.39 billion	0.32	$331.23 million	$1.11	8.31

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

Insider & Institutional Ownership

77.7% of Upwork shares are held by institutional investors. Comparatively, 45.9% of PagSeguro Digital shares are held by institutional investors. 7.6% of Upwork shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Upwork and PagSeguro Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Upwork	0	2	8	0	2.80
PagSeguro Digital	1	1	7	0	2.67

Upwork presently has a consensus price target of $15.70, indicating a potential upside of 50.24%. PagSeguro Digital has a consensus price target of $15.11, indicating a potential upside of 63.81%. Given PagSeguro Digital’s higher probable upside, analysts clearly believe PagSeguro Digital is more favorable than Upwork.

Volatility & Risk

Upwork has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500.

Summary

Upwork beats PagSeguro Digital on 8 of the 14 factors compared between the two stocks.

About Upwork

Upwork Inc., together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company’s work marketplace provides access to talent with various skills across a range of categories, including administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development. Its work marketplace also enables clients to streamline workflows, such as talent sourcing, outreach, and contracting. The company’s work marketplace offers access to various functionalities for remote engagements with talent, including communication and collaboration, ability to receive talent invoices through their work marketplace, and payment protection. Its marketplace offerings include Upwork Payroll and Upwork Enterprise, as well as managed and escrow services. The company was formerly known as Elance-oDesk, Inc. and changed its name to Upwork Inc. in May 2015. Upwork Inc. was incorporated in 2013 and is headquartered in San Francisco, California.

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.