Net 1 UEPS Technologies (NASDAQ:UEPS) and QC (OTCMKTS:QCCO) are both small-cap industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Institutional & Insider Ownership
52.1% of Net 1 UEPS Technologies shares are owned by institutional investors. 3.5% of Net 1 UEPS Technologies shares are owned by company insiders. Comparatively, 63.4% of QC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Net 1 UEPS Technologies and QC’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Net 1 UEPS Technologies||$612.89 million||0.45||$39.15 million||N/A||N/A|
|QC||$98.21 million||0.10||-$3.54 million||N/A||N/A|
Net 1 UEPS Technologies has higher revenue and earnings than QC.
Volatility and Risk
Net 1 UEPS Technologies has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, QC has a beta of 2.51, indicating that its share price is 151% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Net 1 UEPS Technologies and QC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Net 1 UEPS Technologies||0||0||3||0||3.00|
Net 1 UEPS Technologies currently has a consensus target price of $15.00, suggesting a potential upside of 209.92%. Given Net 1 UEPS Technologies’ higher possible upside, equities analysts clearly believe Net 1 UEPS Technologies is more favorable than QC.
This table compares Net 1 UEPS Technologies and QC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Net 1 UEPS Technologies||2.47%||10.61%||6.72%|
Net 1 UEPS Technologies beats QC on 9 of the 11 factors compared between the two stocks.
Net 1 UEPS Technologies Company Profile
Net 1 UEPS Technologies, Inc. provides transaction processing services, financial inclusion products and services, and secure payment technologies in South Africa, the Republic of Korea, and internationally. The company develops and markets transaction processing solutions, including smart card-based alternative payment systems for the unbanked and under-banked populations of developing economies and for mobile transaction channels. It operates through three segments: South African Transaction Processing, International Transaction Processing, and Financial Inclusion and Applied Technologies. The South African Transaction Processing segment primarily offers welfare benefit distribution services for the South African government; and transaction processing for retailers, utilities, and banks. The International Transaction Processing segment offers payment processing services to merchants and card issuers. The Financial Inclusion and Applied Technologies segment provides short-term loans and bank accounts. It also sells prepaid products, such as electricity and airtime, hardware and software, and life insurance products. In addition, this segment distributes mobile subscriber starter packs; and provides financing and project management services to develop and maintain a tower network, as well as operates Money4Jam, a micro-jobbing platform that connects companies and job-seekers for the completion of micro-jobs through mobile phone technology. The company was founded in 1989 and is headquartered in Johannesburg, South Africa.
QC Company Profile
QC Holdings, Inc. and its subsidiaries provide various financial services. The company operates through three segments: Branch Lending, Centralized Lending, and E-Lending. The Branch Lending segment offers payday loans, installment loans, credit services, open-end credit, check cashing services, title loans, debit cards, money transfers, and money orders through its retail branches. The Centralized Lending segment provides long-term installment loans comprising signature and auto equity loans. The E-Lending segment is involved in the Internet lending operations in the United States and Canada. As of December 31, 2014, it operated 409 branches with locations in Alabama, Arizona, California, Colorado, Idaho, Illinois, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Nevada, New Mexico, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin. QC Holdings, Inc. was founded in 1984 and is headquartered in Overland Park, Kansas.
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