StoneCo (STNE) versus Its Rivals Head to Head Analysis

StoneCo (NASDAQ:STNE) is one of 341 public companies in the “Financial Services” industry, but how does it weigh in compared to its competitors? We will compare StoneCo to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Analyst Recommendations

This is a summary of recent ratings for StoneCo and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StoneCo	0	7	3	0	2.30
StoneCo Competitors	1974	6883	11633	443	2.50

StoneCo currently has a consensus price target of $12.94, indicating a potential upside of 75.14%. As a group, “Financial Services” companies have a potential downside of 4.04%. Given StoneCo’s higher possible upside, equities research analysts plainly believe StoneCo is more favorable than its competitors.

Profitability

This table compares StoneCo and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StoneCo	22.92%	22.19%	4.10%
StoneCo Competitors	-409.42%	-15.09%	-6.08%

Institutional and Insider Ownership

73.2% of StoneCo shares are held by institutional investors. Comparatively, 43.2% of shares of all “Financial Services” companies are held by institutional investors. 21.9% of shares of all “Financial Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares StoneCo and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
StoneCo	$2.53 billion	$425.73 million	2.98
StoneCo Competitors	$6.69 billion	$1.09 billion	8.52

StoneCo’s competitors have higher revenue and earnings than StoneCo. StoneCo is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

StoneCo has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, StoneCo’s competitors have a beta of 2.50, suggesting that their average stock price is 150% more volatile than the S&P 500.

Summary

StoneCo competitors beat StoneCo on 8 of the 13 factors compared.

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.