DLocal (NASDAQ:DLO) vs. Western Union (NYSE:WU) Head-To-Head Contrast

DLocal (NASDAQ:DLO) and Western Union (NYSE:WU) are both mid-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Risk and Volatility

DLocal has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Western Union has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Insider and Institutional Ownership

90.1% of DLocal shares are held by institutional investors. Comparatively, 91.8% of Western Union shares are held by institutional investors. 45.4% of DLocal shares are held by company insiders. Comparatively, 3.3% of Western Union shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DLocal	18.00%	40.40%	15.43%
Western Union	12.33%	62.01%	7.09%

Earnings & Valuation

This table compares DLocal and Western Union”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DLocal	$1.09 billion	3.69	$196.80 million	$0.64	21.38
Western Union	$4.05 billion	0.73	$499.60 million	$1.52	6.24

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

Analyst Ratings

This is a breakdown of current ratings and target prices for DLocal and Western Union, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DLocal	0	2	6	1	2.89
Western Union	5	10	0	0	1.67

DLocal currently has a consensus price target of $17.00, suggesting a potential upside of 24.27%. Western Union has a consensus price target of $8.82, suggesting a potential downside of 7.05%. Given DLocal’s stronger consensus rating and higher possible upside, equities analysts plainly believe DLocal is more favorable than Western Union.

Summary

DLocal beats Western Union on 10 of the 15 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 Western Union

The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices. The Consumer Services segments offers bill payment services, which facilitate payments for consumers, businesses, and other organizations, as well as money order services, retail foreign exchange services, prepaid cards, lending partnerships, and digital wallets. The company was founded in 1851 and is headquartered in Denver, Colorado.