Financial Comparison: Cielo (OTCMKTS:CIOXY) versus Grab (NASDAQ:GRAB)

Grab (NASDAQ:GRAB) and Cielo (OTCMKTS:CIOXY) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Risk & Volatility

Grab has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Cielo has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Valuation and Earnings

This table compares Grab and Cielo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grab	$2.58 billion	5.59	-$434.00 million	($0.07)	-52.57
Cielo	$2.12 billion	1.07	$418.05 million	$0.16	5.25

Cielo has lower revenue, but higher earnings than Grab. Grab is trading at a lower price-to-earnings ratio than Cielo, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Grab and Cielo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grab	-8.24%	-3.35%	-2.50%
Cielo	17.54%	12.28%	1.80%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Grab and Cielo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grab	0	0	7	0	3.00
Cielo	0	0	0	0	N/A

Grab currently has a consensus price target of $4.71, indicating a potential upside of 28.11%. Given Grab’s higher possible upside, equities research analysts clearly believe Grab is more favorable than Cielo.

Insider & Institutional Ownership

55.5% of Grab shares are owned by institutional investors. Comparatively, 0.0% of Cielo shares are owned by institutional investors. 3.6% of Grab shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Cielo beats Grab on 7 of the 13 factors compared between the two stocks.

About Grab

Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.

About Cielo

Cielo S.A., through its subsidiaries, provides payment services in Brazil and the United States. The company provides 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, as well as the issuance and management of payment accounts. It also offers services related to the processing means of payments that involve cards, maintenance services, and contacts with merchants for acceptance of credit and debit cards; development and licensing of computer software; electronic transactions processing; and technology services for collection and management of accounts payable and receivable using the Internet. 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.