Head-To-Head Contrast: StoneCo (STNE) versus Its Rivals

StoneCo (NASDAQ: STNE) is one of 68 publicly-traded companies in the “Data processing & preparation” industry, but how does it compare to its peers? We will compare StoneCo to similar businesses based on the strength of its valuation, analyst recommendations, risk, dividends, earnings, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
StoneCo N/A N/A N/A
StoneCo Competitors -40.06% -2,459.55% -9.83%

Valuation and Earnings

This table compares StoneCo and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
StoneCo $414.74 million N/A 108.94
StoneCo Competitors $1.29 billion $83.76 million -46.35

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

Analyst Ratings

This is a breakdown of current ratings for StoneCo and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StoneCo 0 3 2 0 2.40
StoneCo Competitors 489 2022 2847 140 2.48

StoneCo currently has a consensus target price of $33.92, suggesting a potential downside of 5.65%. As a group, “Data processing & preparation” companies have a potential upside of 4.93%. Given StoneCo’s peers stronger consensus rating and higher possible upside, analysts plainly believe StoneCo has less favorable growth aspects than its peers.

Insider and Institutional Ownership

33.3% of StoneCo shares are held by institutional investors. Comparatively, 54.4% of shares of all “Data processing & preparation” companies are held by institutional investors. 20.7% of shares of all “Data processing & preparation” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

StoneCo peers beat StoneCo on 7 of the 11 factors compared.

StoneCo Company Profile

StoneCo Ltd. provides financial technology solutions that empower 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 technology and solutions to digital merchants through sales and technical personnel and software vendors. As of June 30, 2018, the company served approximately 200,000 clients, which included digital, and brick-and-mortar merchants, primarily small-and-medium-sized businesses; and 95 integrated partners, such as global payment service providers, digital marketplaces, and integrated software vendors. The company was founded in 2012 and is headquartered in São Paulo, Brazil.

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