StoneCo (NASDAQ:STNE – Get Free Report) and Grab (NASDAQ:GRAB – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.
Volatility and Risk
StoneCo has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500. Comparatively, Grab has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.
Valuation & Earnings
This table compares StoneCo and Grab”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| StoneCo | $2.46 billion | 1.91 | -$280.92 million | ($0.54) | -30.46 |
| Grab | $3.37 billion | 5.32 | $268.00 million | $0.03 | 148.33 |
Grab has higher revenue and earnings than StoneCo. StoneCo is trading at a lower price-to-earnings ratio than Grab, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares StoneCo and Grab’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| StoneCo | -7.28% | 20.18% | 4.23% |
| Grab | 7.92% | 4.09% | 2.42% |
Institutional & Insider Ownership
73.2% of StoneCo shares are owned by institutional investors. Comparatively, 55.5% of Grab shares are owned by institutional investors. 11.3% of StoneCo shares are owned by insiders. Comparatively, 3.6% of Grab shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for StoneCo and Grab, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| StoneCo | 3 | 2 | 7 | 0 | 2.33 |
| Grab | 0 | 1 | 5 | 1 | 3.00 |
StoneCo currently has a consensus price target of $17.50, suggesting a potential upside of 6.38%. Grab has a consensus price target of $6.47, suggesting a potential upside of 45.43%. Given Grab’s stronger consensus rating and higher probable upside, analysts plainly believe Grab is more favorable than StoneCo.
Summary
Grab beats StoneCo on 9 of the 15 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 Grab
Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.
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