Contrasting StoneCo (NASDAQ:STNE) and Global Blue Group (NYSE:GB)

StoneCo (NASDAQ:STNE) and Global Blue Group (NYSE:GB) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Valuation and Earnings

This table compares StoneCo and Global Blue Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StoneCo	$2.41 billion	1.57	$318.89 million	$1.11	11.03
Global Blue Group	$445.57 million	2.41	$15.12 million	$0.07	80.86

StoneCo has higher revenue and earnings than Global Blue Group. StoneCo is trading at a lower price-to-earnings ratio than Global Blue Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares StoneCo and Global Blue Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StoneCo	15.27%	13.21%	3.97%
Global Blue Group	7.32%	48.62%	2.67%

Risk and Volatility

StoneCo has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500. Comparatively, Global Blue Group has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Institutional & Insider Ownership

73.2% of StoneCo shares are owned by institutional investors. Comparatively, 89.7% of Global Blue Group shares are owned by institutional investors. 11.3% of StoneCo shares are owned by insiders. Comparatively, 5.2% of Global Blue Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for StoneCo and Global Blue Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StoneCo	1	1	8	0	2.70
Global Blue Group	0	0	0	0	N/A

StoneCo currently has a consensus price target of $17.80, indicating a potential upside of 45.42%. Given StoneCo’s higher probable upside, research analysts plainly believe StoneCo is more favorable than Global Blue Group.

Summary

StoneCo beats Global Blue Group on 9 of the 13 factors compared between the two stocks.

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.

About Global Blue Group

Global Blue Group Holding AG, together with its subsidiaries, provides technology-enabled transaction processing services for merchants, banks, acquirers, governments, and travelers in Europe, the Asia Pacific, and internationally. The company operates in three segments: Tax Free Shopping Technology Solutions (TFSS), Added-Value Payment Solutions (AVPS), and Retail Tech Solutions (RTS). It offers TFSS, a value added tax (VAT) refund service that allows eligible shoppers to reclaim VAT on goods purchased outside of their home country; and intelligence and marketing services. The company also provides AVPS, a service which enables customers to pay in their choice of preferred currency, home or destination, and at the point of sale (POS) when shopping outside of their home country under the Dynamic Currency Choice and Currency Select brands. In addition, it offers currency conversion services for POS, e-commerce return solutions, dynamic currency conversion (DCC) services, and DCC services at ATMs, as well as multi-currency processing services for online retailers. Further, the company provides ZigZag, a technology platform that fully digitalizes the eCommerce returns experience and enhances the process for both retailers and consumers; Yocuda that enables retailers to send digital receipts to their customers; and ShipUp, a post-purchase engagement solution for online purchases enabling brands to deliver seamless, proactive, and branded post-purchase communication. Global Blue Group Holding AG was founded in 1980 and is headquartered in Wangen-Brüttisellen, Switzerland.