Cannae (NYSE:CNNE) versus Lesaka Technologies (NASDAQ:LSAK) Financial Contrast

by · The Cerbat Gem

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

Valuation & Earnings

This table compares Cannae and Lesaka Technologies”s top-line revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Cannae$408.60 million1.71-$513.20 million($3.02)-5.35
Lesaka Technologies$721.55 million0.51$2.76 million$0.04107.50

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

Insider & Institutional Ownership

88.1% of Cannae shares are owned by institutional investors. Comparatively, 24.2% of Lesaka Technologies shares are owned by institutional investors. 10.9% of Cannae shares are owned by company insiders. Comparatively, 6.0% of Lesaka Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Cannae and Lesaka Technologies, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Cannae10202.33
Lesaka Technologies02012.67

Cannae presently has a consensus target price of $17.00, indicating a potential upside of 5.26%. Lesaka Technologies has a consensus target price of $7.56, indicating a potential upside of 75.81%. Given Lesaka Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Lesaka Technologies is more favorable than Cannae.

Profitability

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

Net MarginsReturn on EquityReturn on Assets
Cannae-38.18%-14.10%-10.60%
Lesaka Technologies0.43%1.65%0.46%

Volatility & Risk

Cannae has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Lesaka Technologies has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Summary

Lesaka Technologies beats Cannae on 10 of the 15 factors compared between the two stocks.

About Cannae

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Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. was founded in 2014 and is based in Las Vegas, Nevada.

About Lesaka Technologies

(Get Free Report)

Lesaka Technologies, Inc. operates as a Fintech company that utilizes its proprietary banking and payment technologies to deliver financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. It offers cash management solutions, growth capital, card acquiring, bill payment technologies, and value-added services to formal and informal retail merchants, as well as banking, lending, and insurance solutions to consumers across Southern Africa. The company also engages in the sale of POS devices, SIM cards, and other consumables; and license of rights to use certain technology developed by the company, as well as offers related technology services. The company was formerly known as Net 1 UEPS Technologies, Inc. and changed its name to Lesaka Technologies, Inc. in May 2022. Lesaka Technologies, Inc. was incorporated in 1997 and is headquartered in Johannesburg, South Africa.