Financial Analysis DLocal (NASDAQ:DLO) vs. TechTarget (NASDAQ:TTGT)


TechTarget (NASDAQ:TTGT – Get Rating) and DLocal (NASDAQ:DLO – Get Rating) are both mid-size IT and technology companies, but which is the best investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares the net margins, return on equity, and return on assets of TechTarget and DLocal.

Net margins Return on equity return on assets
TechTarget 4.63% 21.93% 6.89%
DLocal 29.95% 32.37% 15.33%

Benefits and evaluation

This table compares revenue, earnings per share, and valuation of TechTarget and DLocal.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
TechTarget $263.43 million 7.81 $950,000.00 $0.38 183.19
DLocal $244.12 million 38.11 $77.88 million $0.28 112.61

DLocal has lower earnings, but higher earnings than TechTarget. DLocal trades at a lower price-to-earnings ratio than TechTarget, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for TechTarget and DLocal, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
TechTarget 0 0 4 0 3.00
DLocal 0 2 5 0 2.71

TechTarget currently has a consensus target price of $91.00, suggesting a potential upside of 30.73%. DLocal has a consensus target price of $38.71, suggesting a potential upside of 22.79%. Given TechTarget’s stronger consensus rating and higher likely upside, equity research analysts clearly think TechTarget is more favorable than DLocal.

Institutional and Insider Ownership

99.8% of TechTarget shares are held by institutional investors. Comparatively, 93.3% of DLocal shares are held by institutional investors. 8.9% of TechTarget shares are held by insiders. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a company will outperform the market over the long term.

Volatility and risk

TechTarget has a beta of 0.99, indicating its stock price is 1% less volatile than the S&P 500. In comparison, DLocal has a beta of 1.44, indicating its stock price is 44% more volatile than the S&P 500.

About TechTarget

(Get an assessment)

TechTarget, Inc., together with its subsidiaries, provides business-impacting marketing and sales services for business-to-business technology companies in North America and internationally. It also provides intent-to-purchase marketing and sales services for enterprise technology vendors; and tailored marketing programs that incorporate demand generation, brand advertising techniques, and content curation and creation. The Company offers online services, including IT Deal Alert, including Priority Engine, Qualified Sales Opportunities, Deal Data Services; on-demand solutions, such as whitepapers, webcasts, podcasts, videocasts, virtual trade shows, and content sponsorships; branding solutions include on-net, off-net, and microsite branding and related formats; custom content creation services; and the BrightTALK platform which allows customers to create, host and promote webinars, virtual events and video content. It also operates an integrated content platform that consists of a network of approximately 150 websites and 1,080 webinars and virtual event channels that focus on a specific IT sector, such as storage, security or networking. Additionally, the Company enables registered members to conduct their pre-purchase research by accessing vendor-provided content through its virtual event and webinar channels, and website networks. TechTarget, Inc. was incorporated in 1999 and is headquartered in Newton, Massachusetts.

About DLocal

(Get an assessment)

DLocal Limited operates a payment platform in the United States, Europe, China and internationally. Its payment platform allows merchants to get paid and make payments online. The company serves commerce, streaming, ridesharing, financial services, advertising, software as a service, travel, e-learning, on-demand delivery, gaming and cryptography. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.



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Sarah J. Greer