C3.ai, Inc. (AI) vs StoneCo Ltd. (STNE)

C3.ai, Inc. and StoneCo Ltd. are both Software Infrastructure companies. C3.ai, Inc. and StoneCo Ltd. are of similar size ($1.9B and $1.8B). C3.ai, Inc. has negative trailing earnings, so its P/E is not meaningful; StoneCo Ltd. trades at 2.9×. StoneCo Ltd. grew revenue faster over the last twelve months: 8.71% against −37.6%. StoneCo Ltd. has the higher net margin (24.1% vs −192.1%) and the higher return on invested capital (27.2% vs −673.0%). Across the 19 metrics below, StoneCo Ltd. leads on 17 and C3.ai, Inc. on 2.

Valuation

Metric AI STNE Software Infrastructure median
P/E n/m 2.93 26.15
P/S 7.72 0.66 2.87
P/B 2.58 0.99 2.94
Price to free cash flow n/m 2.43 17.26
EV/EBITDA n/m 2.02 15.00
EV/Sales 4.92 1.14 2.95
Earnings yield (26.60%) 34.14% 0.00%
Free cash flow yield (8.68%) 41.07% 0.39%

Profitability

Metric AI STNE Software Infrastructure median
Gross margin 29.09% 73.59% 59.21%
Operating margin (203.09%) 49.68% 0.00%
Net margin (192.10%) 24.12% 0.00%
Free cash flow margin (67.03%) 27.20% 0.00%
Return on equity (59.77%) 33.67% 0.00%
Return on assets (48.43%) 6.10% 0.00%
Return on invested capital (673.03%) 27.16% 0.00%

Growth

Metric AI STNE Software Infrastructure median
Revenue growth (TTM) (37.55%) 8.71% 13.57%
EPS growth (last fiscal year) (49.55%) 265.22% 20.22%
Revenue growth, 5-year CAGR 6.44% 31.53% 16.02%
Net income growth, 5-year CAGR 0.00% 20.77% 0.00%

Health

Metric AI STNE Software Infrastructure median
Debt to equity 0.00 1.80 0.02
Current ratio 6.16 1.26 1.54
Net debt to EBITDA 1.19 1.18 0.05

Dividend

Metric AI STNE Software Infrastructure median
Dividend yield — 0.00% 1.09%
Payout ratio — 0.00 0.30

Size

Metric AI STNE Software Infrastructure median
Market cap 1.86b 1.80b 655.75m

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