Analyzing PagSeguro Digital (NYSE:PAGS) and Xylo Technologies (NASDAQ:XYLO)

PagSeguro Digital (NYSE:PAGS) and Xylo Technologies (NASDAQ:XYLO) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

45.9% of PagSeguro Digital shares are owned by institutional investors. Comparatively, 0.3% of Xylo Technologies shares are owned by institutional investors. 2.2% of Xylo Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PagSeguro Digital	10.93%	14.97%	3.56%
Xylo Technologies	N/A	N/A	N/A

Risk & Volatility

PagSeguro Digital has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500. Comparatively, Xylo Technologies has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Valuation & Earnings

This table compares PagSeguro Digital and Xylo Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PagSeguro Digital	$3.19 billion	0.87	$331.23 million	$1.17	7.20
Xylo Technologies	$57.64 million	0.11	-$16.02 million	N/A	N/A

PagSeguro Digital has higher revenue and earnings than Xylo Technologies.

Analyst Ratings

This is a breakdown of current recommendations and price targets for PagSeguro Digital and Xylo Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PagSeguro Digital	1	2	6	1	2.70
Xylo Technologies	0	0	0	0	N/A

PagSeguro Digital currently has a consensus price target of $14.50, suggesting a potential upside of 72.21%. Given PagSeguro Digital’s higher probable upside, analysts clearly believe PagSeguro Digital is more favorable than Xylo Technologies.

Summary

PagSeguro Digital beats Xylo Technologies on 11 of the 12 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 Xylo Technologies

Xylo Technologies Ltd, a technology-based company, provides medical-related devices and products in the United States, Europe, Asia, Israel, and internationally. The company operates through Corporate, E-commerce, Online Advertising & Internet Traffic Routing, Online Event Management, and Others segments. It offers Medigus Ultrasonic Surgical Endostapler, an endoscopy system, which is used for the treatment of gastroesophageal reflux disease. The company also develops biological gels to protect patients against biological threats and reduce the intrusion of allergens and viruses through the upper airways and eye cavities. In addition, it provides digital advertising platform; and operates online stores for the sale of various consumer products on the Amazon online marketplace, as well as an online event management and ticketing platform. Further, the company develops wireless vehicle battery charging technologies and modular electronic vehicles. The company was formerly known as Medigus Ltd. and changed its name to Xylo Technologies Ltd in April 2024. Xylo Technologies Ltd was incorporated in 1999 and is headquartered in Tel Aviv-Yafo, Israel.