Compare DLocal Limited (DLO) vs Corpay, Inc. (CPAY) Stock

Corpay, Inc. (CPAY) offers the better valuation at 23.3x trailing P/E (12.5x forward), making it the more compelling value choice. Analysts rate DLocal Limited (DLO) a "Buy" — based on 13 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Corpay, Inc. (CPAY) is the cheapest at 23.3x versus DLocal Limited at 31.4x. On forward P/E, Corpay, Inc. is actually cheaper at 12.5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: DLocal Limited wins at 0.29x versus Corpay, Inc.'s 1.77x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Corpay, Inc. (CPAY) delivered a total return of +15.1%, compared to -60.6% for DLocal Limited (DLO). A $10,000 investment in CPAY five years ago would be worth approximately $12K today (assuming dividends reinvested). Over 10 years, the gap is even starker: CPAY returned +154.6% versus DLO's -60.6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), DLocal Limited (DLO) is the lower-risk stock at 1.29β versus Corpay, Inc.'s 1.46β — meaning CPAY is approximately 13% more volatile than DLO relative to the S&P 500. On balance sheet safety, DLocal Limited (DLO) carries a lower debt/equity ratio of 11% versus 3% for Corpay, Inc. — giving it more financial flexibility in a downturn.

Corpay, Inc. (CPAY) is the more profitable company, earning 25.3% net margin versus 16.1% for DLocal Limited — meaning it keeps 25.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CPAY leads at 45.0% versus 18.8% for DLO. At the gross margin level — before operating expenses — CPAY leads at 78.1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, DLocal Limited (DLO) is the more undervalued stock at a PEG of 0.29x versus Corpay, Inc.'s 1.77x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Corpay, Inc. (CPAY) trades at 12.5x forward P/E versus 14.0x for DLocal Limited — 1.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DLO: 38.9% to $17.00.

None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, DLocal Limited (DLO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.29)). Both have compounded well over 10 years (DLO: -60.6%, CPAY: +154.6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.