Evertec, Inc. (EVTC) vs StoneCo Ltd. (STNE)

Evertec, Inc. and StoneCo Ltd. are both Software Infrastructure companies. Evertec, Inc. and StoneCo Ltd. are of similar size ($1.9B and $1.8B). StoneCo Ltd. trades at the lower P/E: 2.9× against 20.2×. Evertec, Inc. grew revenue faster over the last twelve months: 12.4% against 8.71%. StoneCo Ltd. has the higher net margin (24.1% vs 9.80%) and the higher return on invested capital (27.2% vs 6.80%). Only Evertec, Inc. pays a dividend (0.48%). Across the 23 metrics below, StoneCo Ltd. leads on 20 and Evertec, Inc. on 3.

Valuation

Metric EVTC STNE Software Infrastructure median
P/E 20.20 2.93 26.15
P/S 1.90 0.66 2.87
P/B 2.94 0.99 2.94
Price to free cash flow 14.09 2.43 17.26
EV/EBITDA 8.70 2.02 15.00
EV/Sales 2.90 1.14 2.95
Earnings yield 4.95% 34.14% 0.00%
Free cash flow yield 7.10% 41.07% 0.39%

Profitability

Metric EVTC STNE Software Infrastructure median
Gross margin 51.12% 73.59% 59.21%
Operating margin 17.93% 49.68% 0.00%
Net margin 9.80% 24.12% 0.00%
Free cash flow margin 13.51% 27.20% 0.00%
Return on equity 15.49% 33.67% 0.00%
Return on assets 4.39% 6.10% 0.00%
Return on invested capital 6.80% 27.16% 0.00%

Growth

Metric EVTC STNE Software Infrastructure median
Revenue growth (TTM) 12.36% 8.71% 13.57%
EPS growth (last fiscal year) 27.17% 265.22% 20.22%
Revenue growth, 5-year CAGR 12.79% 31.53% 16.02%
Net income growth, 5-year CAGR 6.28% 20.77% 0.00%

Health

Metric EVTC STNE Software Infrastructure median
Debt to equity 2.00 1.80 0.02
Current ratio 1.70 1.26 1.54
Net debt to EBITDA 2.36 1.18 0.05

Dividend

Metric EVTC STNE Software Infrastructure median
Dividend yield 0.48% 0.00% 1.09%
Payout ratio 0.10 0.00 0.30

Size

Metric EVTC STNE Software Infrastructure median
Market cap 1.87b 1.80b 655.75m

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