Net 1 UEPS Technologies (NASDAQ: UEPS) and FleetCor Technologies (NYSE:FLT) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Net 1 UEPS Technologies 14.19% 15.31% 7.86%
FleetCor Technologies 23.28% 20.87% 6.85%

Valuation & Earnings

This table compares Net 1 UEPS Technologies and FleetCor Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Net 1 UEPS Technologies $606.27 million 0.88 $156.03 million $1.63 5.76
FleetCor Technologies $2.06 billion 6.39 $1.11 billion $5.06 28.31

FleetCor Technologies has higher revenue and earnings than Net 1 UEPS Technologies. Net 1 UEPS Technologies is trading at a lower price-to-earnings ratio than FleetCor Technologies, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Net 1 UEPS Technologies has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, FleetCor Technologies has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Net 1 UEPS Technologies and FleetCor Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Net 1 UEPS Technologies 0 0 0 0 N/A
FleetCor Technologies 0 0 13 1 3.07

FleetCor Technologies has a consensus target price of $182.46, indicating a potential upside of 27.37%. Given FleetCor Technologies’ higher possible upside, analysts plainly believe FleetCor Technologies is more favorable than Net 1 UEPS Technologies.

Institutional and Insider Ownership

56.9% of Net 1 UEPS Technologies shares are owned by institutional investors. Comparatively, 94.5% of FleetCor Technologies shares are owned by institutional investors. 6.3% of Net 1 UEPS Technologies shares are owned by insiders. Comparatively, 4.6% of FleetCor Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

FleetCor Technologies beats Net 1 UEPS Technologies on 12 of the 14 factors compared between the two stocks.

Net 1 UEPS Technologies Company Profile

Net 1 UEPS Technologies, Inc. is a provider of payment solutions, transaction processing services and financial technology across multiple industries. The Company develops and markets a transaction processing solution that encompasses its smart card-based alternative payment system for the unbanked and under-banked populations of developing economies and for mobile transaction channels. The Company operates through three segments: South African transaction processing, International transaction processing, and Financial inclusion and applied technologies. The Company also provides secure transaction technology solutions and services, by offering transaction processing, financial and clinical risk management solutions to various industries. It offers secure online transaction processing, cryptography, mobile telephony, integrated circuit card (chip/smart card) technologies, and the design and provision of financial and value-added services to its cardholder base.

FleetCor Technologies Company Profile

FleetCor Technologies, Inc. is a provider of workforce payment products. The Company offers fuel card payments product solutions, corporate payments products, toll products, lodging cards and gift cards. The Company operates through two segments: North America and International. Its products are sold to businesses, retailers, oil companies and marketers and government entities. Its payment programs enable its customers to manage and control their commercial payments, card programs, and employee spending and provide card-accepting merchants with a customer base that can increase their sales and customer loyalty. The Company also provides a suite of fleet related and workforce payment products, including mobile telematics services, fleet maintenance management and employee benefit and transportation related payments. As of December 31, 2016, its products were used in 53 countries around the world, with its primary geographies in the United States, Brazil and the United Kingdom.

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