Analysis of Lesaka Technologies (NASDAQ:LSAK) and Usio (NASDAQ:USIO)


Usio (NASDAQ:USIO – Get Rating) and Lesaka Technologies (NASDAQ:LSAK – Get Rating) are both small cap business services companies, but which is the better company? We’ll compare the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Valuation and benefits

This chart compares revenue, earnings per share (EPS), and valuation of Usio and Lesaka Technologies.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Usio $61.94 million 0.68 -$320,000.00 ($0.06) -27.50
Lesaka Technologies $130.79 million 2.68 -$38.06 million ($0.48) -12:35 p.m.

Usio has higher revenue, but lower revenue than Lesaka Technologies. Usio trades at a lower price-to-earnings ratio than Lesaka Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility and risk

Usio has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. By comparison, Lesaka Technologies has a beta of 1.16, indicating that its stock price is 16% more volatile. volatile than the S&P 500.

Insider and Institutional Ownership

19.7% of Usio shares are held by institutional investors. Comparatively, 47.1% of Lesaka Technologies shares are held by institutional investors. 23.3% of Usio shares are held by company insiders. Comparatively, 2.7% of Lesaka Technologies shares are held by company insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of the current ratings and recommendations for Usio and Lesaka Technologies, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Usio 0 1 1 0 2.50
Lesaka Technologies 0 0 0 0 N / A

Usio currently has a consensus target price of $6.00, suggesting a potential upside of 263.64%. Given Usio’s possible higher upside, analysts clearly believe that Usio is more favorable than Lesaka Technologies.

Profitability

This table compares the net margins, return on equity and return on assets of Usio and Lesaka Technologies.

Net margins Return on equity return on assets
Usio -1.84% -6.97% -1.20%
Lesaka Technologies -20.01% -10.59% -6.28%

Summary

Usio beats Lesaka Technologies on 9 of the 13 factors compared between the two stocks.

About Usio

(Get a rating)

Usio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers different types of Automated Clearing House (ACH) processing; and processing services based on credit, prepaid and debit cards. Its ACH transaction processing services include Represented Check, an NSF consumer check that is presented for payment electronically rather than through the paper check collection system; and Accounts Receivable Check Conversion, a consumer paper check payment that converts to an electronic check. The company also offers merchant account services for processing card transactions through the VISA, MasterCard, American Express, Discover and JCB networks, including online terminal services accessed through a website or retail services accessible via a physical terminal. Additionally, it provides an exclusive web-based customer service application that allows businesses to process one-time and recurring payments through electronic checks or credit cards; and an interactive voice-response phone system for businesses, which accept payments directly from consumers over the phone using electronic checks or credit cards. In addition, the company offers prepaid and incentive card issuance services; and operates a prepaid core processing platform, as well as additional services, such as e-invoice presentment, document composition, document breakdown, and print and mail services for various verticals of industry, including utilities and financial institutions. It markets and sells ACH products and services primarily through resellers; and the prepaid card program directly to government entities, businesses and consumers via the Internet. The company was formerly known as Payment Data Systems, Inc. and changed its name to Usio, Inc. in June 2019. Usio, Inc. was incorporated in 1998 and is headquartered in San Antonio, Texas.

About Lesaka Technologies

(Get a rating)

Lesaka Technologies logoLesaka Technologies, Inc., a fintech company, provides fintech products and services to unbanked and underbanked individuals and small businesses, primarily in South Africa and overseas. The company develops payment technologies to offer financial and value-added services to its customers. It operates through three segments: Processing, Financial Services and Technology. The Processing segment provides transaction processing services that involve the collection, transmission and retrieval of all transaction data to its customers. The Financial Services segment includes activities related to the provision of financial services to customers, including bank accounts, loans and life insurance products. This segment also offers short-term loans to customers. The Technology segment sells hardware, such as point-of-sale devices, SIM cards and other consumables; and grants the right to use certain technologies developed by the company, as well as offers of related technological services. The company was formerly known as Net 1 UEPS Technologies, Inc. and changed its name to Lesaka Technologies, Inc. in May 2022. Lesaka Technologies, Inc. was incorporated in 1997 and is headquartered in Johannesburg, South Africa.



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