Net 1 UEPS Technologies (NASDAQ: UEPS) and Qiwi Plc (NASDAQ:QIWI) are both small-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their profitabiliy, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.
Insider and Institutional Ownership
56.9% of Net 1 UEPS Technologies shares are held by institutional investors. Comparatively, 15.9% of Qiwi Plc shares are held by institutional investors. 6.3% of Net 1 UEPS Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Qiwi Plc pays an annual dividend of $0.76 per share and has a dividend yield of 4.2%. Net 1 UEPS Technologies does not pay a dividend. Qiwi Plc pays out 110.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
Net 1 UEPS Technologies has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Qiwi Plc has a beta of 3.34, indicating that its stock price is 234% more volatile than the S&P 500.
This table compares Net 1 UEPS Technologies and Qiwi Plc’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Net 1 UEPS Technologies||14.19%||15.31%||7.86%|
Valuation & Earnings
This table compares Net 1 UEPS Technologies and Qiwi Plc’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Net 1 UEPS Technologies||$606.27 million||0.87||$156.03 million||$1.63||5.73|
|Qiwi Plc||$591.02 million||1.88||$179.77 million||$0.69||26.49|
Qiwi Plc has higher revenue, but lower earnings than Net 1 UEPS Technologies. Net 1 UEPS Technologies is trading at a lower price-to-earnings ratio than Qiwi Plc, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Net 1 UEPS Technologies and Qiwi Plc, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Net 1 UEPS Technologies||0||0||0||0||N/A|
Qiwi Plc has a consensus price target of $22.67, suggesting a potential upside of 24.00%. Given Qiwi Plc’s higher probable upside, analysts plainly believe Qiwi Plc is more favorable than Net 1 UEPS Technologies.
Qiwi Plc beats Net 1 UEPS Technologies on 10 of the 15 factors compared between the two stocks.
Net 1 UEPS Technologies Company Profile
Net 1 UEPS Technologies, Inc. is a provider of payment solutions, transaction processing services and financial technology across multiple industries. The Company develops and markets a transaction processing solution that encompasses its smart card-based alternative payment system for the unbanked and under-banked populations of developing economies and for mobile transaction channels. The Company operates through three segments: South African transaction processing, International transaction processing, and Financial inclusion and applied technologies. The Company also provides secure transaction technology solutions and services, by offering transaction processing, financial and clinical risk management solutions to various industries. It offers secure online transaction processing, cryptography, mobile telephony, integrated circuit card (chip/smart card) technologies, and the design and provision of financial and value-added services to its cardholder base.
Qiwi Plc Company Profile
QIWI plc is a provider of payment services in Russia and the Commonwealth of Independent States (CIS). The Company’s network enables payment services across physical, online and mobile channels. The Company operates in target markets and customer segments. As of December 31, 2016, the Company had deployed over 17.2 million virtual wallets, over 162,000 kiosks and terminals, and enabled merchants to accept over Russian rubles 70 billion cash and electronic payments monthly. The Company’s consumers can use cash, stored value and other electronic payment methods to order and pay for goods and services across physical or virtual environments interchangeably. The Company provides integrated network of physical distribution points and virtual wallets, as well as payment channels and methods that enable consumers to deposit cash, convert it into a digital form and transfer the funds to a virtual wallet or pay for any merchant in its network.
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