Comparing PagSeguro Digital (NYSE:PAGS) & Sangoma Technologies (OTCMKTS:SAMOF)

PagSeguro Digital (NYSE:PAGS) and Sangoma Technologies (OTCMKTS:SAMOF) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Earnings and Valuation

This table compares PagSeguro Digital and Sangoma Technologies’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PagSeguro Digital	$3.19 billion	1.22	$331.23 million	$1.03	11.48
Sangoma Technologies	N/A	N/A	N/A	$0.03	138.67

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

Profitability

This table compares PagSeguro Digital and Sangoma Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PagSeguro Digital	10.37%	13.94%	3.76%
Sangoma Technologies	N/A	N/A	N/A

Institutional and Insider Ownership

45.9% of PagSeguro Digital shares are owned by institutional investors. Comparatively, 0.6% of Sangoma Technologies shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for PagSeguro Digital and Sangoma Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagSeguro Digital	0	2	7	0	2.78
Sangoma Technologies	0	0	0	0	N/A

PagSeguro Digital presently has a consensus target price of $15.09, indicating a potential upside of 27.98%. Given PagSeguro Digital’s higher probable upside, research analysts plainly believe PagSeguro Digital is more favorable than Sangoma Technologies.

Summary

PagSeguro Digital beats Sangoma Technologies on 8 of the 9 factors compared between the two stocks.

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.

About Sangoma Technologies

Sangoma Technologies Corp. engages in the provision of value-based Communications as a Service (CaaS) solutions. The firm’s CaaS offerings include Unified Communications as a Service, SIP Trunking as a Service, Contact Center as a Service, Desktop as a Service, Communications Platform as a Service, Fax as a Service, Video Meetings as a Service, Device as a Service, and Access Control as a Service. Its product portfolio contains turn-key commercial communications solutions and hardware and software components that enable IP communications systems for telecommunications and data communications applications. The company was founded by David Mandelstam in 1984 and is headquartered in Markham, Canada.