Comparing Fiverr International (NYSE:FVRR) & DLocal (NASDAQ:DLO)

Fiverr International (NYSE:FVRR) and DLocal (NASDAQ:DLO) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Insider & Institutional Ownership

59.0% of Fiverr International shares are held by institutional investors. Comparatively, 90.1% of DLocal shares are held by institutional investors. 15.9% of Fiverr International shares are held by company insiders. Comparatively, 45.4% of DLocal shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Fiverr International has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, DLocal has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fiverr International	0	5	5	0	2.50
DLocal	0	7	1	0	2.13

Fiverr International currently has a consensus price target of $32.30, suggesting a potential downside of 5.44%. DLocal has a consensus price target of $11.19, suggesting a potential downside of 3.47%. Given DLocal’s higher probable upside, analysts clearly believe DLocal is more favorable than Fiverr International.

Valuation and Earnings

This table compares Fiverr International and DLocal”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fiverr International	$379.32 million	3.48	$3.68 million	$0.26	131.38
DLocal	$650.35 million	5.27	$148.96 million	$0.40	28.98

DLocal has higher revenue and earnings than Fiverr International. DLocal is trading at a lower price-to-earnings ratio than Fiverr International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fiverr International and DLocal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fiverr International	2.67%	7.10%	2.38%
DLocal	16.35%	32.59%	12.95%

Summary

DLocal beats Fiverr International on 10 of the 14 factors compared between the two stocks.

About Fiverr International

Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company's platform includes various categories in ten verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and tech, business, data, lifestyle, and photography. It also offers value-added products, including subscription-based content marketing, back-office, learning and development offerings, creative talent, and freelancer management platforms. In addition, the company provides a suite of professional solutions that enable businesses to engage with freelancers; Fiverr Pro, a marketplace; Fiverr Certified, a storefront to access certified experts for partner vendors; Fiverr Enterprise, a gateway to source and manage on-demand and long-term freelancers. Further, it offers various value-added products, including Promoted Gigs which allows sellers to advertise their services on the platform; and Seller Plus, a subscription program that equips sellers with advanced tools. The company's buyers include businesses of various sizes, as well as sellers comprise a group of freelancers and agencies. Fiverr International Ltd. was incorporated in 2010 and is headquartered in Tel Aviv, Israel.

About DLocal

DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods. It also provides pay-out solution used for merchants to scale pay-out operations. In addition, the company offers dLocal for Platforms, an end-to-end payment solution that offers a range of services to help platforms manage payments. It serves its products to commerce, streaming, ride-hailing, financial services, advertising, SaaS, travel, e-learning, on-demand delivery, and gaming and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.