Critical Comparison: DLocal (NASDAQ:DLO) vs. Orix Corp Ads (NYSE:IX)

Orix Corp Ads (NYSE:IX) and DLocal (NASDAQ:DLO) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Earnings and Valuation

This table compares Orix Corp Ads and DLocal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orix Corp Ads	$22.13 billion	2.01	$2.95 billion	$3.62	11.09
DLocal	$1.09 billion	4.01	$196.80 million	$0.67	22.18

Orix Corp Ads has higher revenue and earnings than DLocal. Orix Corp Ads is trading at a lower price-to-earnings ratio than DLocal, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Orix Corp Ads and DLocal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orix Corp Ads	18.02%	13.11%	3.38%
DLocal	15.04%	41.64%	12.96%

Dividends

Orix Corp Ads pays an annual dividend of $0.58 per share and has a dividend yield of 1.4%. DLocal pays an annual dividend of $0.79 per share and has a dividend yield of 5.3%. Orix Corp Ads pays out 16.0% of its earnings in the form of a dividend. DLocal pays out 117.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Orix Corp Ads and DLocal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orix Corp Ads	0	1	1	0	2.50
DLocal	0	1	6	0	2.86

DLocal has a consensus target price of $18.83, indicating a potential upside of 26.74%. Given DLocal’s stronger consensus rating and higher possible upside, analysts clearly believe DLocal is more favorable than Orix Corp Ads.

Volatility & Risk

Orix Corp Ads has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, DLocal has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Institutional and Insider Ownership

1.7% of Orix Corp Ads shares are held by institutional investors. Comparatively, 90.1% of DLocal shares are held by institutional investors. 0.1% of Orix Corp Ads shares are held by company insiders. Comparatively, 45.4% of DLocal shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

DLocal beats Orix Corp Ads on 11 of the 16 factors compared between the two stocks.

About Orix Corp Ads

ORIX Corporation provides diversified financial services in Japan, the United States, Asia, Europe, Australasia, and the Middle East. The company's Corporate Financial Services and Maintenance Leasing segment is involved in the finance and fee; leasing and rental of automobiles, electronic measuring instruments, and ICT-related equipment businesses; and provision of life insurance and environment and energy-related products and services. Its Real Estate segment develops, rents, and manages real estate properties; operates facilities; real estate asset management; manages residential condominiums and office building; and provides construction contracting, real estate brokerage, and real estate investment advisory services, as well as operates hotels and Japanese inns. The company's PE Investment and Concession segment engages in the private equity (PE) investment and concession businesses. Its Environment and Energy segment provides renewable energy; ESCO; retails electric power; sells solar panels and battery electricity storage systems; and recycling and waste management services, as well as generates solar power. The company's Insurance segment sells life insurance products through agents, banks, and other financial institutions, as well as face-to-face and online. Its Banking and Credit segment provides banking and consumer finance services. The company's Aircraft and Ships segment engages in the aircraft leasing and management, and ship-related finance and investment businesses. Its ORIX USA segment offers finance, investment, and asset management services. The company's ORIX Europe segment provides equity and fixed income asset management services. Its Asia and Australia segment offers finance and investment businesses. The company was formerly known as Orient Leasing Co., Ltd. and changed its name to ORIX Corporation in 1989. ORIX Corporation was incorporated in 1950 and is headquartered in Tokyo, Japan.

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.