Point of sale (POS) companies are those that offer software tools where customers execute payments for goods and services. Two such companies are Block (SQ) and Clover Health Investments (CLOV). Today I will analyze both stocks to determine which is currently the better investment.Headquartered in San Francisco, Block (Formerly Square), Inc. (SQ) is a fintech company engaged in creating instruments that enable merchants to accept card payments. SQ also provides multiple auxiliary tools and services for sellers. Founded in 2014, Clover Health Investments, Corp. (CLOV) is a Tennessee-based healthcare company that provides Medicare advantage insurance services.
Both stocks have significantly underperformed the broader market in 2021, presently trading near their respective 52-week lows. Year-to-date, shares of SQ have plunged 23%, while CLOV has tanked down 75% over the same period.
Keeping that in mind, today I’ll analyze and compare both of these stocks to determine which one presents a better buying opportunity at current levels.