Financial Contrast: DLocal (NASDAQ:DLO) vs. Marqeta (NASDAQ:MQ)
by Jessica Moore · The Cerbat GemMarqeta (NASDAQ:MQ – Get Free Report) and DLocal (NASDAQ:DLO – Get Free Report) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Earnings and Valuation
This table compares Marqeta and DLocal”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Marqeta | $624.88 million | 2.70 | -$13.93 million | $0.01 | 397.50 |
| DLocal | $1.09 billion | 3.45 | $196.80 million | $0.63 | 20.29 |
DLocal has higher revenue and earnings than Marqeta. DLocal is trading at a lower price-to-earnings ratio than Marqeta, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Marqeta has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, DLocal has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.
Profitability
This table compares Marqeta and DLocal’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Marqeta | 0.33% | 0.27% | 0.15% |
| DLocal | 15.85% | 41.22% | 14.27% |
Insider and Institutional Ownership
78.6% of Marqeta shares are held by institutional investors. Comparatively, 90.1% of DLocal shares are held by institutional investors. 12.6% of Marqeta shares are held by company insiders. Comparatively, 45.4% of DLocal shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Marqeta and DLocal, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Marqeta | 2 | 8 | 1 | 0 | 1.91 |
| DLocal | 0 | 2 | 5 | 1 | 2.88 |
Marqeta currently has a consensus price target of $5.22, indicating a potential upside of 31.29%. DLocal has a consensus price target of $16.63, indicating a potential upside of 30.04%. Given Marqeta’s higher probable upside, analysts clearly believe Marqeta is more favorable than DLocal.
Summary
DLocal beats Marqeta on 12 of the 15 factors compared between the two stocks.
About Marqeta
Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services. It offers its solutions in various verticals, including financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.
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.