Stock Comparison

EWZ vs PAGS

EWZ vs PagSeguro Digital Ltd

Who's the better investment? Let's break it down.

The Verdict

PAGS takes this one.

It's not even close. PAGS outscores EWZ by 8.1 points. That's a significant gap in our deep value framework.

EWZ

0.5

out of 10

Distressed

Winner

PAGS

PagSeguro Digital Ltd

8.6

out of 10

Hidden Gem

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Valuation

EWZ

Metric

PAGS

N/A

Market Cap

$2.5B

2.0

P/E Ratio

Lower may indicate better value

6.0

1.9

Forward P/E

6.7

N/A

Price/Book

1.0

N/A

EV/EBITDA

1.8

Profitability & Growth

EWZ

Metric

PAGS

N/A

Profit Margin

10.4%

N/A

Gross Margin

53.0%

N/A

Operating Margin

40.2%

N/A

Return on Equity

14.6%

N/A

Return on Assets

2.9%

N/A

Revenue Growth

6.3%

N/A

EPS

$7.35

Financial Health

EWZ

Metric

PAGS

N/A

Debt-to-Equity

Lower = less leverage

0.2

N/A

Current Ratio

Above 1.0 is healthy

1.4

0.7

Beta

Lower = less volatile

1.3

None

Dividend Yield

4.4%

Risk Comparison

EWZ

Overall

Aggressive

Financial

Not Applicable (EWZ is an ETF, not an operating company with a balance sheet, cash burn)

Market

High

Competitive

Medium

Execution

Not Applicable (EWZ is an ETF, not an operating company with 'execution')

Regulatory

Medium

What Could Go Wrong

The biggest risk is a sustained deterioration in Brazil's macroeconomic or political stability, potentially triggered by fiscal mismanagement or global commodity price collapse. This could lead to a s...

Red Flags

🚩EWZ is an ETF and fundamentally does not offer 10x growth potential as an operating company would.
🚩Inconsistent market price data in real-time intelligence (e.g., $39.37 vs $33.70) indicating potenti...
🚩Brazilian equity markets have historically experienced significant volatility due to political insta...

PAGS

Overall

Aggressive

Financial

Medium

Market

High

Competitive

High

Execution

Medium

Regulatory

Medium

What Could Go Wrong

The rapid expansion of PagSeguro's credit portfolio, particularly the 190.6% YoY growth in working capital loans, poses a significant financial risk. If economic conditions in Brazil worsen or credit ...

Red Flags

🚩Overall total revenue ex-ITC growth of 6.4% YoY in Q1 2026 is modest for a company with '10x potenti...
🚩Analyst consensus rating of 'Hold' with only 31.4% implied upside indicates market skepticism regard...
🚩Significant exposure to Brazilian macroeconomic volatility, which can impact both payment volumes an...

Competitive Moat

EWZ

Rating

🛡️ None

Trend

➡️ Stable

Efficient Scale (due to its size and liquidity, it's difficult for new entrants to compete on cost and tracking efficiency).

PAGS

Rating

🛡️ Narrow

Trend

📈 Expanding

Network EffectsSwitching CostsCost AdvantagesBrand Power

Investment Thesis

EWZ0.5/10

If Brazil's economy continues its recovery trajectory driven by favorable commodity prices and prudent fiscal policies, then EWZ, as the primary vehicle for broad Brazil equity exposure, could see moderate capital appreciation. This is bullish for investors seeking diversified exposure to an emerging market recovery, but it is not an opportunity for 10x growth given the ETF structure.

Full EWZ Analysis

PAGS8.6/10

If PagSeguro continues to grow its higher-margin banking and credit services at >30% YoY for the next 2-3 years, successfully expanding these segments to represent over 40% of total revenue while maintaining NPLs below 3.5%, then its TTM P/E multiple (currently 6.72x) could expand to 20-25x (typical for profitable fintechs) on an accelerating EPS, driving a 3-5 year valuation re-rating of 5x-10x. ...

Full PAGS Analysis

Price Targets & Strategy

Price Targets & Entry/Exit Strategy

Growth Catalysts

Growth Catalysts Comparison

Market Sentiment

Market Sentiment Analysis

The Deep Dive

EWZ0.5/10

EWZ, as the iShares MSCI Brazil ETF, is fundamentally designed to track the performance of the broad Brazilian equity market, not to achieve 10x growth potential within a 3-5 year timeframe. Its structure as a diversified fund precludes the exponential growth characteristics typically found in high-risk, high-reward operating companies. The fund itself lacks strategic vision, competitive advantages, or direct financial health metrics in the way a company does. While recent market intelligence in...

Full EWZ Analysis

PAGS8.6/10

PagSeguro maintains its strong positioning in the vast Brazilian digital payments and banking market for MSMEs and consumers. Q1 2026 results confirm successful execution on its strategic pivot into higher-margin banking (+40.6% YoY revenue growth) and credit services (+35.9% YoY portfolio growth), enhancing long-term profitability and competitive moat. The company exhibits improved ROAE (15.8%), controlled NPLs (3.05%), and significant capital returns via buybacks and dividends. While overall r...

Full PAGS Analysis

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Not Financial Advice

This comparison is for educational purposes only. We are not financial advisors. Always do your own research and consult a qualified financial advisor before making investment decisions.