Contrasting SMC Entertainment (OTCMKTS:SMCE) & PagSeguro Digital (NYSE:PAGS)

SMC Entertainment (OTCMKTS:SMCE) and PagSeguro Digital (NYSE:PAGS) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Insider & Institutional Ownership

45.9% of PagSeguro Digital shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares SMC Entertainment and PagSeguro Digital’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SMC Entertainment	N/A	N/A	-$1.56 million	N/A	N/A
PagSeguro Digital	$3.19 billion	1.15	$331.23 million	$1.11	10.04

PagSeguro Digital has higher revenue and earnings than SMC Entertainment.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for SMC Entertainment and PagSeguro Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMC Entertainment	0	0	0	0	N/A
PagSeguro Digital	0	2	6	0	2.75

PagSeguro Digital has a consensus price target of $16.10, indicating a potential upside of 44.52%. Given PagSeguro Digital’s higher probable upside, analysts plainly believe PagSeguro Digital is more favorable than SMC Entertainment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SMC Entertainment	N/A	-8.75%	-3.95%
PagSeguro Digital	10.70%	14.51%	3.72%

Risk & Volatility

SMC Entertainment has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500. Comparatively, PagSeguro Digital has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500.

Summary

PagSeguro Digital beats SMC Entertainment on 9 of the 9 factors compared between the two stocks.

About SMC Entertainment

SMC Entertainment, Inc. focuses on the acquisition and support of financial technology companies in the United States. The company develops and provides technology that combines artificial intelligence (AI) /machine learning (ML) driven Quantitative investing (IQ Engine) with AI-enabled wealth management tools; and offers IQ Engine, an AI driven contextual analyzer that creates a repository of various equity research. It markets a software-as-a-service (SaaS) proprietary platform for certified public accountants, financial institutions, and registered investment advisors. The company was formerly known as SMC Recordings, Inc. and changed its name to SMC Entertainment, Inc. in May 2011. SMC Entertainment, Inc. was incorporated in 1998 and is based in Boca Raton, 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.