Reviewing StoneCo (NASDAQ:STNE) and TROOPS (NASDAQ:TROO)

TROOPS (NASDAQ:TROO) and StoneCo (NASDAQ:STNE) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Volatility & Risk

TROOPS has a beta of 3.49, meaning that its stock price is 249% more volatile than the S&P 500. Comparatively, StoneCo has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for TROOPS and StoneCo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TROOPS	1	0	0	0	1.00
StoneCo	0	6	4	0	2.40

StoneCo has a consensus target price of $14.59, indicating a potential upside of 55.83%. Given StoneCo’s stronger consensus rating and higher possible upside, analysts clearly believe StoneCo is more favorable than TROOPS.

Institutional & Insider Ownership

73.2% of StoneCo shares are owned by institutional investors. 1.1% of TROOPS shares are owned by company insiders. Comparatively, 11.3% of StoneCo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares TROOPS and StoneCo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TROOPS	N/A	N/A	N/A
StoneCo	22.92%	22.19%	4.10%

Earnings and Valuation

This table compares TROOPS and StoneCo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TROOPS	$17.10 million	13.64	-$27.91 million	N/A	N/A
StoneCo	$2.53 billion	0.92	$425.73 million	$2.48	3.77

StoneCo has higher revenue and earnings than TROOPS.

Summary

StoneCo beats TROOPS on 10 of the 12 factors compared between the two stocks.

About TROOPS

TROOPS, Inc., together with its subsidiaries, engages in the money lending business in Hong Kong and Australia. The company provides mortgage, personal, and corporate loans; operates online financial marketplace through a platform for money lending, system integration, and consultation services; and invests in real estate properties in Hong Kong. It also offers fintech and IT support services, which includes artificial intelligence, big data and blockchain technology, machine learning, fingerprint ID, facial recognition, and cloud computing, and GFS strives; and engages in property leasing and management services. The company was formerly known as SGOCO Group, Ltd. and changed its name to TROOPS, Inc. in November 2021. TROOPS, Inc. was founded in 2005 and is headquartered in Tsuen Wan, Hong Kong.

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.