A10 Networks, Inc. (ATEN) vs StoneCo Ltd. (STNE)

A10 Networks, Inc. and StoneCo Ltd. are both Software Infrastructure companies. A10 Networks, Inc. and StoneCo Ltd. are of similar size ($1.8B and $1.8B). StoneCo Ltd. trades at the lower P/E: 2.9× against 40.7×. A10 Networks, Inc. grew revenue faster over the last twelve months: 12.2% against 8.71%. StoneCo Ltd. has the higher net margin (24.1% vs 13.9%) and the lower return on invested capital (27.2% vs 31.3%). Only A10 Networks, Inc. pays a dividend (0.98%). Across the 23 metrics below, StoneCo Ltd. leads on 15 and A10 Networks, Inc. on 8.

Valuation

Metric ATEN STNE Software Infrastructure median
P/E 40.72 2.93 26.15
P/S 5.68 0.66 2.87
P/B 7.41 0.99 2.94
Price to free cash flow 28.93 2.43 17.26
EV/EBITDA 27.83 2.02 15.00
EV/Sales 5.95 1.14 2.95
Earnings yield 2.46% 34.14% 0.00%
Free cash flow yield 3.46% 41.07% 0.39%

Profitability

Metric ATEN STNE Software Infrastructure median
Gross margin 79.38% 73.59% 59.21%
Operating margin 16.14% 49.68% 0.00%
Net margin 13.85% 24.12% 0.00%
Free cash flow margin 19.65% 27.20% 0.00%
Return on equity 19.45% 33.67% 0.00%
Return on assets 6.68% 6.10% 0.00%
Return on invested capital 31.25% 27.16% 0.00%

Growth

Metric ATEN STNE Software Infrastructure median
Revenue growth (TTM) 12.20% 8.71% 13.57%
EPS growth (last fiscal year) (14.93%) 265.22% 20.22%
Revenue growth, 5-year CAGR 5.20% 31.53% 16.02%
Net income growth, 5-year CAGR 18.79% 20.77% 0.00%

Health

Metric ATEN STNE Software Infrastructure median
Debt to equity 0.92 1.80 0.02
Current ratio 1.29 1.26 1.54
Net debt to EBITDA (2.57) 1.18 0.05

Dividend

Metric ATEN STNE Software Infrastructure median
Dividend yield 0.98% 0.00% 1.09%
Payout ratio 0.40 0.00 0.30

Size

Metric ATEN STNE Software Infrastructure median
Market cap 1.76b 1.80b 655.75m

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