Financial Analysis: Lesaka Technologies (NASDAQ:LSAK) versus SHF (NASDAQ:SHFS)

SHF (NASDAQ:SHFS) and Lesaka Technologies (NASDAQ:LSAK) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Earnings and Valuation

This table compares SHF and Lesaka Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SHF	$7.67 million	0.13	-$2.16 million	($0.99)	-0.16
Lesaka Technologies	$721.55 million	0.51	$2.76 million	$0.04	106.75

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

Insider & Institutional Ownership

29.2% of SHF shares are owned by institutional investors. Comparatively, 24.2% of Lesaka Technologies shares are owned by institutional investors. 5.8% of SHF shares are owned by company insiders. Comparatively, 5.1% of Lesaka Technologies shares are owned by company 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 SHF and Lesaka Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SHF	-47.33%	-90.25%	-41.71%
Lesaka Technologies	0.43%	1.65%	0.46%

Analyst Ratings

This is a breakdown of current ratings and price targets for SHF and Lesaka Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SHF	1	0	0	0	1.00
Lesaka Technologies	1	1	0	0	1.50

Volatility & Risk

SHF has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Lesaka Technologies has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.

Summary

Lesaka Technologies beats SHF on 9 of the 12 factors compared between the two stocks.

About SHF

SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.

About Lesaka Technologies

Lesaka Technologies, Inc. operates as a Fintech company that utilizes its proprietary banking and payment technologies to deliver financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. It offers cash management solutions, growth capital, card acquiring, bill payment technologies, and value-added services to formal and informal retail merchants, as well as banking, lending, and insurance solutions to consumers across Southern Africa. The company also engages in the sale of POS devices, SIM cards, and other consumables; and license of rights to use certain technology developed by the company, as well as offers related technology 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.