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

Institutional & Insider Ownership

33.2% of StoneCo shares are held by institutional investors. Comparatively, 54.3% of shares of all “Data processing & preparation” companies are held by institutional investors. 20.3% of shares of all “Data processing & preparation” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares StoneCo and its rivals’ 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 rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
StoneCo $414.74 million N/A 76.18
StoneCo Competitors $1.29 billion $83.76 million -50.12

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StoneCo 0 3 2 0 2.40
StoneCo Competitors 490 2034 2857 140 2.48

StoneCo currently has a consensus target price of $33.92, suggesting a potential upside of 34.92%. As a group, “Data processing & preparation” companies have a potential upside of 3.70%. Given StoneCo’s higher probable upside, analysts plainly believe StoneCo is more favorable than its rivals.

Summary

StoneCo rivals beat StoneCo on 6 of the 11 factors compared.

StoneCo Company Profile

StoneCo Ltd. engages in the provision of financial technology solutions. It caters to merchants and partners that conduct electronic commerce across in-store, online, and mobile channels. It offers cloud-based technology platform, electronic payments, and automation of business processes at the point-of-sale. The company was founded on March 11, 2014 and is headquartered in São Paulo, Brazil.

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