PagSeguro Digital (NYSE:PAGS) & MSP Recovery (NASDAQ:LIFW) Head to Head Analysis

MSP Recovery (NASDAQ:LIFW) and PagSeguro Digital (NYSE:PAGS) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for MSP Recovery and PagSeguro Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSP Recovery	0	0	0	0	N/A
PagSeguro Digital	0	1	7	0	2.88

PagSeguro Digital has a consensus target price of $16.19, suggesting a potential upside of 43.06%. Given PagSeguro Digital’s higher probable upside, analysts clearly believe PagSeguro Digital is more favorable than MSP Recovery.

Profitability

This table compares MSP Recovery and PagSeguro Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MSP Recovery	-724.07%	-3.70%	-1.76%
PagSeguro Digital	10.70%	14.51%	3.72%

Valuation and Earnings

This table compares MSP Recovery and PagSeguro Digital’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSP Recovery	$7.51 million	4.94	-$56.35 million	($6.26)	-0.04
PagSeguro Digital	$9.39 billion	0.40	$331.23 million	$1.11	10.19

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

Insider & Institutional Ownership

3.8% of MSP Recovery shares are held by institutional investors. Comparatively, 45.9% of PagSeguro Digital shares are held by institutional investors. 19.4% of MSP Recovery shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

MSP Recovery has a beta of -2.31, meaning that its stock price is 331% less volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.

Summary

PagSeguro Digital beats MSP Recovery on 11 of the 13 factors compared between the two stocks.

About MSP Recovery

MSP Recovery, Inc., doing business as LifeWallet, operates as a healthcare recovery and data analytics company in the United States and Puerto Rico. The company offers claims recovery services, including services to related parties or third parties to assist entities with pursuit of claims recovery rights. It also provides LifeWallet, a scalable and expandable data ecosystem where tokenized data is stored in a platform with multiple applications, including LifeWallet EHR for hospitals, medical providers, major medical laboratories, and governmental entities that gather and store electronic health records; Chase to Pay, a real-time, or near real-time analytics driven platform that identifies the proper primary payer at the point of care; LifeChain which is in development in order to tokenize healthcare claims and patient records using blockchain technology; LifeWallet 911 which is in development for utilization by emergency service organizations; LifeWallet Legal; LifeWallet Health; and LifeWallet Sports which connected brands with college athletes. MSP Recovery, Inc. was founded in 2014 and is headquartered in Coral Gables, Florida.

About PagSeguro Digital

PagSeguro Digital Ltd., together with its subsidiaries, provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company's products and services include PagSeguro Ecosystem, a digital ecosystem that operates as a closed loop where its clients are able to address their primary day to day financial needs, including receiving and spending funds, and managing and growing their businesses; PagBank digital account, which offers payment and banking services through the PagBank mobile app, as well as centralizes various cash-in options, functionalities, services, and cash-out options in a single ecosystem; and PlugPag, a tool for medium-sized and larger merchants that enables them to connect their point of sale (POS) device directly to their enterprise resource planning software or sales automation system through Bluetooth. It also offers cash-in solutions; online and in-person payment tools; and online gaming and cross-border digital services, as well as issues prepaid, credit, and cash cards. In addition, the company provides functionalities, and value-added services and features, such as purchase protection mechanisms, antifraud platform, account and business management tools, POS app, i-Banking App, Super App, and e-commerce support and bill payment services; and PedeFácil, an order management and food delivery app. Further, it is involved in processing of back-office solutions, including sales reconciliation, and gateway solutions and services, as well as the capture of credit cards with acquirers and sub acquirers. The company was founded in 2006 and is headquartered in São Paulo, Brazil.