Analyzing DLocal (NASDAQ:DLO) & Freightos (NASDAQ:CRGO)

DLocal (NASDAQ:DLOGet Free Report) and Freightos (NASDAQ:CRGOGet Free Report) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

90.1% of DLocal shares are held by institutional investors. Comparatively, 22.7% of Freightos shares are held by institutional investors. 45.4% of DLocal shares are held by insiders. Comparatively, 19.6% of Freightos shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for DLocal and Freightos, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DLocal 0 2 6 1 2.89
Freightos 1 0 1 0 2.00

DLocal presently has a consensus target price of $16.78, suggesting a potential upside of 20.88%. Freightos has a consensus target price of $3.00, suggesting a potential upside of 50.00%. Given Freightos’ higher probable upside, analysts clearly believe Freightos is more favorable than DLocal.

Valuation & Earnings

This table compares DLocal and Freightos”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DLocal $1.09 billion 3.74 $196.80 million $0.64 21.69
Freightos $29.46 million 3.49 -$17.52 million ($0.35) -5.71

DLocal has higher revenue and earnings than Freightos. Freightos 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 DLocal and Freightos’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DLocal 18.00% 40.40% 15.43%
Freightos -59.46% -37.28% -25.50%

Volatility and Risk

DLocal has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Freightos has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.

Summary

DLocal beats Freightos on 14 of the 15 factors compared between the two stocks.

About DLocal

(Get Free Report)

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 Freightos

(Get Free Report)

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.

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