Financial Analysis: PagSeguro Digital (NYSE:PAGS) and CompuMed (OTCMKTS:CMPD)

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

Profitability

This table compares CompuMed and PagSeguro Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CompuMed	2.37%	4.54%	3.27%
PagSeguro Digital	10.93%	14.97%	3.56%

Analyst Ratings

This is a summary of recent ratings and price targets for CompuMed and PagSeguro Digital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompuMed	0	0	0	0	N/A
PagSeguro Digital	1	1	7	0	2.67

PagSeguro Digital has a consensus target price of $15.11, suggesting a potential upside of 66.79%. Given PagSeguro Digital’s higher possible upside, analysts clearly believe PagSeguro Digital is more favorable than CompuMed.

Insider and Institutional Ownership

45.9% of PagSeguro Digital shares are held by institutional investors. 22.0% of CompuMed shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

CompuMed has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500.

Earnings & Valuation

This table compares CompuMed and PagSeguro Digital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompuMed	$5.84 million	0.83	-$30,000.00	$0.04	92.50
PagSeguro Digital	$3.19 billion	0.93	$331.23 million	$1.11	8.16

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

Summary

PagSeguro Digital beats CompuMed on 11 of the 13 factors compared between the two stocks.

About CompuMed

CompuMed, Inc., an enterprise telemedicine solutions company, provides clinical care services for patients and medical facilities. It offers telecardiology and teleradiology services that provide real-time access to U.S. Board-Certified specialists through cloud-based technology and integrated medical devices to medical facilities worldwide. The company also provides enterprise telemedicine solutions; a suite of telecardiology services and diagnostic exam interpretations for pediatric and adult patients, including electrocardiogram (ECG) devices, echocardiogram, ECG, vascular, holter, nuclear, and video consults; and reading, transcription, reporting, storage, and video consultations in the areas of Vscan, X-ray, ultrasound, mammography, computed tomography, magnetic resonance imaging, and radiologist video consults. It also offers OsteoGram software that works in combination with standard or digital X-ray equipment to support osteoporosis screening, diagnosis, and therapy monitoring. In addition, the company provides mobile ECG and ultrasound solutions that provide patients with immediate access to its board-certified specialists; and medical devices. It serves organ procurement organizations, rural healthcare, and correctional healthcare industries. CompuMed, Inc. was founded in 1973 and is headquartered in Los Angeles, California.

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.