Head-To-Head Review: CIELO S A/S (OTCMKTS:CIOXY) versus Healthequity (OTCMKTS:HQY)

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Healthequity (NASDAQ:HQY) and CIELO S A/S (OTCMKTS:CIOXY) are both mid-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Profitability

This table compares Healthequity and CIELO S A/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Healthequity 13.03% 11.31% 7.22%
CIELO S A/S 21.62% 17.83% 2.95%

Insider and Institutional Ownership

95.8% of Healthequity shares are owned by institutional investors. Comparatively, 0.0% of CIELO S A/S shares are owned by institutional investors. 3.7% of Healthequity shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Healthequity has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, CIELO S A/S has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Healthequity and CIELO S A/S, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Healthequity 0 1 10 1 3.00
CIELO S A/S 0 2 1 0 2.33

Healthequity currently has a consensus target price of $79.08, suggesting a potential upside of 17.27%. Given Healthequity’s stronger consensus rating and higher possible upside, research analysts plainly believe Healthequity is more favorable than CIELO S A/S.

Earnings and Valuation

This table compares Healthequity and CIELO S A/S’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Healthequity $287.24 million 16.58 $73.90 million $0.95 70.98
CIELO S A/S $3.22 billion 1.61 $914.34 million N/A N/A

CIELO S A/S has higher revenue and earnings than Healthequity.

Summary

Healthequity beats CIELO S A/S on 10 of the 14 factors compared between the two stocks.

About Healthequity

HealthEquity, Inc. provides various solutions for managing health care accounts, health reimbursement arrangements, and flexible spending accounts for health plans, insurance companies, and third-party administrators in the United States. The company offers healthcare saving and spending platform, a cloud-based platform for individuals to make health saving and spending decisions, pay healthcare bills, compare treatment options and prices, receive personalized benefit and clinical information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides mutual fund investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool. In addition, the company offers health reimbursement and flexible spending arrangements solutions; and Employee Retirement Income Security Act's plan administration and investment services. HealthEquity, Inc. was founded in 2002 and is headquartered in Draper, Utah.

About CIELO S A/S

Cielo S.A., through its subsidiaries, provides payment services in Brazil. The company is involved in the provision of services related to credit and debit cards, and other payment methods, including signing up of merchants and service providers; rental, installation, and maintenance of point of sale terminals; and data capture and processing of electronic and manual transactions. It also offers services related in the processing means of payments that involve cards, maintenance services, and contacts with merchants for acceptance of credit and debit cards; data transmission services to load fixed or mobile phone credits; software development and licensing of computer programs; electronic transactions processing; IT services for collection and management of accounts payable and receivable; and data processing services and support services to medical companies. The company was formerly known as Companhia Brasileira de Meios de Pagamento and changed its name to Cielo S.A. in December 2009. Cielo S.A. was founded in 1995 and is headquartered in Barueri, Brazil.

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