Critical Contrast: QC (OTCMKTS:QCCO) & Lesaka Technologies (NASDAQ:LSAK)

Posted by Defense World Staff on Jun 14th, 2023

QC (OTCMKTS:QCCO – Get Rating) and Lesaka Technologies (NASDAQ:LSAK – Get Rating) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for QC and Lesaka Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QC	0	0	0	0	N/A
Lesaka Technologies	0	0	1	0	3.00

Insider and Institutional Ownership

3.4% of QC shares are owned by institutional investors. Comparatively, 56.3% of Lesaka Technologies shares are owned by institutional investors. 63.4% of QC shares are owned by insiders. Comparatively, 2.7% of Lesaka Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

QC has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Lesaka Technologies has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares QC and Lesaka Technologies’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QC	$152.82 million	0.06	-$2.85 million	N/A	N/A
Lesaka Technologies	$222.61 million	1.02	-$43.88 million	($0.62)	-5.92

QC has higher earnings, but lower revenue than Lesaka Technologies.

Profitability

This table compares QC and Lesaka Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QC	N/A	N/A	N/A
Lesaka Technologies	-7.42%	-14.06%	-4.77%

About QC

(Get Rating)

QC Holdings, Inc. provides financial services and is focused on providing credit solutions for underserved consumers and small business. The firm engages in check cashing and short term lending. It also offers long term installment loans, online loans, and factoring for the small business. The company was founded by Don Allen Early and Mary Lou Andersen-Early in 1984 and is headquartered in Lenexa, KS.

About Lesaka Technologies

(Get Rating)

Lesaka Technologies, Inc. engages in the provision of financial technology, products, and services to unbanked and underbanked individuals and small businesses in South Africa and other emerging economies. It operates through the following segments: Consumer, Merchant, and Other. The Consumer segment deals with the provision of financial services to customers, including a bank account, loans and insurance products. The Merchant segment refers to goods and services provided to corporate and other juristic entities. The Other segment includes operations outside South Africa and IPG’s processing activities. The company was founded by Serge Christian Pierre Belamant in 1989 and is headquartered in Johannesburg, South Africa.

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