Loomis (OTCMKTS:LOIMF) and Usio (NASDAQ:USIO) Financial Comparison

Loomis (OTCMKTS:LOIMF) and Usio (NASDAQ:USIO) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Profitability

This table compares Loomis and Usio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loomis	5.72%	14.10%	4.57%
Usio	-2.43%	-11.73%	-1.86%

Insider and Institutional Ownership

20.2% of Usio shares are owned by institutional investors. 19.0% of Usio shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Loomis and Usio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loomis	0	1	0	0	2.00
Usio	1	1	2	0	2.25

Usio has a consensus price target of $5.13, suggesting a potential upside of 142.32%. Given Usio’s stronger consensus rating and higher possible upside, analysts plainly believe Usio is more favorable than Loomis.

Valuation & Earnings

This table compares Loomis and Usio”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loomis	$3.11 billion	1.02	$161.68 million	$2.71	17.53
Usio	$88.85 million	0.66	-$2.51 million	($0.08)	-26.44

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

Volatility & Risk

Loomis has a beta of -0.91, meaning that its share price is 191% less volatile than the S&P 500. Comparatively, Usio has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Summary

Loomis beats Usio on 8 of the 14 factors compared between the two stocks.

About Loomis

Loomis AB (publ) provides solutions for the distribution, payments, handling, storage, and recycling of cash and other valuables. The company offers a range of solutions for cash in transit, cash management services, foreign exchange services, automated teller machines, automated solutions, and international valuables logistics, as well as operates Loomis Pay, a payment service that enables processing of various types of payment methods, such as card, cash, and digital alternatives. It serves financial institutions, banks, retailers, commercial enterprises, and other customers, as well as public sector in Sweden, the United States, France, Switzerland, Spain, the United Kingdom, and internationally. Loomis AB (publ) was founded in 1852 and is headquartered in Stockholm, Sweden.

About Usio

Usio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing; and credit, prepaid card, and debit card-based processing services. Its ACH transaction processing services include Represented Check and Check Conversion for electronic payment facilitation. In addition, the company offers merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a website or retail services accessed through a physical terminal. Further, it provides a proprietary web-based customer service application that allows companies to process one-time and recurring payments through e-checks or credit cards; and an interactive voice response telephone system to companies, which accept payments directly from consumers over the telephone using e-checks or credit cards. Additionally, the company offers prepaid and incentive card issuance services; and operates a prepaid core processing platform, as well as provides additional services, such as electronic bill presentment, document composition, document decomposition, and printing and mailing services for various industry verticals, including utilities and financial institutions. It markets and sells ACH products and services primarily through resellers; and prepaid card program directly to government entities, corporations, and to consumers through 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.