Usio (NASDAQ:USIO – Get Rating) and Lesaka Technologies (NASDAQ:LSAK – Get Rating) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
Insider & Institutional Ownership
19.7% of Usio shares are held by institutional investors. Comparatively, 47.1% of Lesaka Technologies shares are held by institutional investors. 24.0% of Usio shares are held by company insiders. Comparatively, 2.7% of Lesaka Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for Usio and Lesaka Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Usio | 0 | 0 | 2 | 0 | 3.00 |
| Lesaka Technologies | 0 | 0 | 0 | 0 | N/A |
Usio presently has a consensus price target of $7.50, suggesting a potential upside of 252.11%. Given Usio’s higher possible upside, equities research analysts plainly believe Usio is more favorable than Lesaka Technologies.
Risk and Volatility
Usio has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Lesaka Technologies has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.
Profitability
This table compares Usio and Lesaka Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Usio | -1.84% | -6.97% | -1.20% |
| Lesaka Technologies | -20.01% | -10.59% | -6.28% |
Earnings and Valuation
This table compares Usio and Lesaka Technologies’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Usio | $61.94 million | 0.88 | -$320,000.00 | ($0.06) | -35.49 |
| Lesaka Technologies | $130.79 million | 2.60 | -$38.06 million | ($0.48) | -11.96 |
Usio has higher earnings, but lower revenue than Lesaka Technologies. Usio is trading at a lower price-to-earnings ratio than Lesaka Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
Usio beats Lesaka Technologies on 9 of the 13 factors compared between the two stocks.
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, a consumer non-sufficient funds 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 is converted into an e-check. The company also 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. In addition, 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. Further, 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.
About Lesaka Technologies
Lesaka Technologies, Inc., a financial technology company, provides fintech products and services to unbanked and underbanked individuals and small businesses primarily in South Africa and internationally. The company develops payment technologies to offers 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, transmittal, 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 licenses right 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.
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