Better Buy: Nuvei Stock or Dye & Durham Stock?

One offers stable long-term contracts; the other, Hollywood actors. But you may be surprised at which tech stock is a better buy.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 21, 2023 2:45 pm EDT

There’s been some interest in tech stocks once more, with the market still down, but some companies looking to the future — especially companies that have seen shares reach all-time highs in 2021, only to hit all-time lows by 2023.

Yet when it comes to better buys, tech stocks can be tricky. Sure, there are many that could rebound, but not all of them. That is why today we’re going to look at two solid investments on the TSX today. However, every portfolio should involve only a little risk, and tech stocks are still risky.

So, which is the better option: Nuvei (TSX: NVEI) or Dye & Durham (TSX: DND)?

A worker uses the cloud for paperless work. tech — Source: Getty Images

Dye & Durham

Granted, Dye and Durham stock hasn’t been around that long on the TSX today. However, it’s made a name for itself thanks to providing software to clientele in stable industries. This includes law firms, governments, financial institutions — basically those that will be the last to go during an apocalypse.

What investors and experts also like about the software strategy is it lines clients up for long-term contracts. Because of this, it’s not only one of the few tech stocks to have a dividend, but it started one from the very get go! That’s despite continuing to use cash for acquisitions as well.

Now, there was some volatility in the stock early on, and this came from increasing its prices back in January 2022. However, this was soon followed by other tech stocks and eventually determined to be just an early response to an eventual reality.

That’s not to say it hasn’t been challenging. The company recently reported a loss of $34.8 million during its latest quarter. Furthermore, revenue came in at $106.7 million — down $109.6 million from the year before. Dye and Durham stock is now focusing on a 10% cost-reduction plan, which has also involved layoffs.

Nuvei stock

Then there’s another software company in a totally different area. Nuvei stock provides a payment platform software program for businesses. What’s more, it offers practically every type of payment option in practically every currency. This also includes cryptocurrency, as of writing.

What’s more, it’s located all over the globe from the Middle East to Europe. Yet again, with e-commerce and tech stocks dropping, Nuvei stock also fell dramatically after hitting highs in September 2021. Yet there has been some recent movement; actor Ryan Reynolds announced his investment in the firm.

Hollywood influences aside, Nuvei stock has had several strong quarters in a row, even while other tech stocks have floundered. It remains a strong buy recommendation by many analysts, with diverse revenue streams offering substantial near- and long-term opportunities.

Organic growth and acquisitions will continue to help fund the company’s growth, and it continues to have about $752 million in cash reserve to fund losses or new acquisitions as well. And as e-commerce, payment solutions and cryptocurrency continue to grow, there are even more opportunities for Nuvei stock to climb.

Bottom line

When it comes down to it, Nuvei stock is a financially responsible company that has brought in an enormous amount of cash, despite the economic environment. While Dye and Durham stock is an excellent option with stable contracts, it continues to struggle financially. So, if it’s down to one, I would go with Nuvei stock on the TSX today.