Solana (NASDAQ:HSDT – Get Free Report) and StoneCo (NASDAQ:STNE – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.
Profitability
This table compares Solana and StoneCo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Solana | -1,302.78% | -41.86% | -18.53% |
| StoneCo | 22.92% | 22.19% | 4.10% |
Risk and Volatility
Solana has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, StoneCo has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Solana | $12.07 million | 11.57 | -$40.89 million | ($30.32) | -0.08 |
| StoneCo | $2.53 billion | 0.98 | $425.73 million | $2.48 | 4.00 |
StoneCo has higher revenue and earnings than Solana. Solana is trading at a lower price-to-earnings ratio than StoneCo, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
18.6% of Solana shares are held by institutional investors. Comparatively, 73.2% of StoneCo shares are held by institutional investors. 14.4% of Solana shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations and price targets for Solana and StoneCo, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Solana | 1 | 1 | 3 | 0 | 2.40 |
| StoneCo | 0 | 6 | 4 | 0 | 2.40 |
Solana presently has a consensus price target of $3.75, indicating a potential upside of 62.34%. StoneCo has a consensus price target of $14.30, indicating a potential upside of 44.01%. Given Solana’s higher probable upside, research analysts plainly believe Solana is more favorable than StoneCo.
Summary
StoneCo beats Solana on 10 of the 13 factors compared between the two stocks.
About Solana
Helius Medical Technologies, Inc., a neurotechnology company, focuses on developing, licensing, and acquiring non-implantable technologies for the treatment of symptoms caused by neurological disease or trauma. The company's product is Portable Neuromodulation Stimulator, a non-surgical medical device intended for use as a short term treatment of gait deficit due to symptoms from multiple sclerosis and balance deficit due to mild-to-moderate traumatic brain injury, as well as to be used in conjunction with supervised therapeutic exercise. The company was incorporated in 2014 and is headquartered in Newtown, Pennsylvania.
About StoneCo
StoneCo Ltd. provides financial technology and software solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and sells solutions to brick-and-mortar and digital merchants through sales team. The company served small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and integrated software vendors. StoneCo Ltd. was founded in 2000 and is headquartered in George Town, the Cayman Islands.
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