StoneCo (NASDAQ:STNE – Get Free Report) is one of 341 publicly-traded companies in the “Financial Services” industry, but how does it compare to its peers? We will compare StoneCo to related businesses based on the strength of its earnings, valuation, dividends, institutional ownership, risk, analyst recommendations and profitability.
Earnings and Valuation
This table compares StoneCo and its peers gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| StoneCo | $2.53 billion | $425.73 million | 3.03 |
| StoneCo Competitors | $9.17 billion | $1.09 billion | 10.06 |
StoneCo’s peers have higher revenue and earnings than StoneCo. StoneCo is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Analyst Ratings
This is a summary of recent ratings for StoneCo and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| StoneCo | 0 | 8 | 2 | 0 | 2.20 |
| StoneCo Competitors | 1988 | 6946 | 11713 | 446 | 2.50 |
StoneCo presently has a consensus target price of $12.30, suggesting a potential upside of 63.78%. As a group, “Financial Services” companies have a potential downside of 6.28%. Given StoneCo’s higher probable upside, equities analysts clearly believe StoneCo is more favorable than its peers.
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 | 22.92% | 22.19% | 4.10% |
| StoneCo Competitors | -338.89% | -39.94% | -5.83% |
Institutional and Insider Ownership
73.2% of StoneCo shares are held by institutional investors. Comparatively, 43.0% of shares of all “Financial Services” companies are held by institutional investors. 21.8% of shares of all “Financial Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
StoneCo has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, StoneCo’s peers have a beta of 2.50, meaning that their average share price is 150% more volatile than the S&P 500.
Summary
StoneCo peers beat StoneCo on 8 of the 13 factors compared.
StoneCo Company Profile
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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