Critical Survey: Cantaloupe (NASDAQ:CTLP) vs. DLocal (NASDAQ:DLO)

Cantaloupe (NASDAQ:CTLP) and DLocal (NASDAQ:DLO) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Profitability

This table compares Cantaloupe and DLocal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cantaloupe	17.32%	8.76%	5.73%
DLocal	17.80%	37.66%	14.84%

Institutional and Insider Ownership

75.8% of Cantaloupe shares are held by institutional investors. Comparatively, 90.1% of DLocal shares are held by institutional investors. 7.1% of Cantaloupe shares are held by company insiders. Comparatively, 45.4% of DLocal shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cantaloupe and DLocal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cantaloupe	1	6	1	0	2.00
DLocal	0	4	6	1	2.73

Cantaloupe currently has a consensus target price of $12.73, indicating a potential upside of 24.59%. DLocal has a consensus target price of $16.40, indicating a potential upside of 37.01%. Given DLocal’s stronger consensus rating and higher possible upside, analysts plainly believe DLocal is more favorable than Cantaloupe.

Volatility & Risk

Cantaloupe has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, DLocal has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cantaloupe	$302.55 million	2.49	$64.53 million	$0.18	56.78
DLocal	$745.97 million	5.01	$120.42 million	$0.56	21.38

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

Summary

DLocal beats Cantaloupe on 14 of the 15 factors compared between the two stocks.

About Cantaloupe

Cantaloupe, Inc., a digital payments and software services company, provides technology solutions for self-service commerce market. The company offers integrated solutions for payments processing, logistics, and back-office management. It also provides G11 cashless and pulse kits that are 4G LTE digital payment devices for payment and consumer engagement applications; G11 chip kit, a digital reader that accepts contact EMV and contactless EMV payment methods; Engage series comprising Engage and Engage Combo, which are digital touchscreen devices that offers networking, security, and interactivity payment methods; and card touchscreen card readers, including P66, P100, P100Pro, and P30. In addition, the company offers self-checkout kiosks,?smart store?concepts, and the Cantaloupe Go management platform comprising Go Mini, Go MiniX, Go Plus100, Go Plus200, Go Plus300, Go Max, Cooler Cafe, and Smart Market; Go Portal, a robust cloud-based platform; and Cheq products, which supports attended and unattended self-service kiosks for the stadium, entertainment, and festival sectors. Further, it provides integrated software services for payment or asset tracking devices in the field to connect into platform for advanced data management, analytics, route scheduling, and loyalty and reward programs; and a range of self-service hardware solutions for vending, micro-markets, amusement, arcade, commercial laundry, air/vacuum, car wash, and other applications. Additionally, the company offers professional, network infrastructure, card processing, and customer/consumer services. Cantaloupe, Inc. was formerly known as USA Technologies, Inc. The company was incorporated in 1992 and is headquartered in Malvern, Pennsylvania.

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.