Financial Review: Emerald (NYSE:EEX) vs. Joint Stock Company Kaspi.kz (NASDAQ:KSPI)

Emerald (NYSE:EEX) and Joint Stock Company Kaspi.kz (NASDAQ:KSPI) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Valuation and Earnings

This table compares Emerald and Joint Stock Company Kaspi.kz”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emerald	$398.80 million	2.43	$2.20 million	$0.03	162.17
Joint Stock Company Kaspi.kz	$2,789.96 billion	0.01	$2.18 billion	$10.42	7.66

Joint Stock Company Kaspi.kz has higher revenue and earnings than Emerald. Joint Stock Company Kaspi.kz is trading at a lower price-to-earnings ratio than Emerald, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Emerald has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Joint Stock Company Kaspi.kz has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Profitability

This table compares Emerald and Joint Stock Company Kaspi.kz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Emerald	1.57%	1.75%	0.63%
Joint Stock Company Kaspi.kz	39.67%	64.11%	11.76%

Analyst Ratings

This is a summary of recent recommendations for Emerald and Joint Stock Company Kaspi.kz, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emerald	0	0	2	0	3.00
Joint Stock Company Kaspi.kz	0	0	3	0	3.00

Emerald currently has a consensus price target of $7.90, suggesting a potential upside of 62.38%. Joint Stock Company Kaspi.kz has a consensus price target of $135.67, suggesting a potential upside of 69.96%. Given Joint Stock Company Kaspi.kz’s higher probable upside, analysts clearly believe Joint Stock Company Kaspi.kz is more favorable than Emerald.

Dividends

Emerald pays an annual dividend of $0.06 per share and has a dividend yield of 1.2%. Joint Stock Company Kaspi.kz pays an annual dividend of $3.50 per share and has a dividend yield of 4.4%. Emerald pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Joint Stock Company Kaspi.kz pays out 33.6% of its earnings in the form of a dividend. Joint Stock Company Kaspi.kz is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

14.9% of Emerald shares are held by institutional investors. Comparatively, 32.2% of Joint Stock Company Kaspi.kz shares are held by institutional investors. 4.0% of Emerald shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Joint Stock Company Kaspi.kz beats Emerald on 11 of the 15 factors compared between the two stocks.

About Emerald

Emerald Holding, Inc. operates business-to-business (B2B) trade shows in the United States. The company provides B2B trade show franchises; and B2B print publications and digital media products, which provide industry specific business news and information across various sectors. It also offers B2B e-commerce and digital merchandising solutions to manufacturers and retailers through Elastic Suite and Bulletin platforms. The company serves retail, design, technology, equipment, and safety and security. Emerald Holding, Inc. was incorporated in 2013 and is headquartered in New York, New York.

About Joint Stock Company Kaspi.kz

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform. The Payments Platform segment facilities transactions between customers and merchants. This segment offers shopping transactions, regular household bills, and peer to peer payments for consumers; accepts payment online and in store, issue and settle invoices, pay suppliers and monitor merchant turnover. It also provides proprietary data facilities informed decision making across multiple areas of business. Its Marketplace Platform segment connects online, and offline merchants and consumers enabling merchants to enhance its sales through an omni channel strategy and enable consumers to buy products and services from various merchants. This segment also operates marketplace through m-commerce, a mobile solution for shopping in person which consumers can use e-commerce to shop anywhere, anytime with free delivery; Kaspi Travel allows consumers to book domestic and international flights and package holidays, domestic rail tickets. It also enhances merchants sales by connecting payments and fintech products, Kapsi advertising, and other delivery services. The Fintech Platform segment provides consumers with BNPL, finance, and savings products and merchants with merchant finance services through super apps and Kapsi.kz Super app. It also involved in the banking; distressed asset management; real estate business; payment processing; online travel; and storage and processing of information services. The company was incorporated in 2008 and is headquartered in Almaty, the Republic of Kazakhstan.