Flywire Corporation (FLYW) vs StoneCo Ltd. (STNE)

Flywire Corporation and StoneCo Ltd. are both Software Infrastructure companies. Flywire Corporation and StoneCo Ltd. are of similar size ($2.3B and $2.1B). StoneCo Ltd. trades at the lower P/E: 3.7× against 64.8×. Flywire Corporation grew revenue faster over the last twelve months: 32.2% against 8.71%. StoneCo Ltd. has the higher net margin (24.1% vs 4.77%) and the higher return on invested capital (27.2% vs 4.70%). Across the 22 metrics below, StoneCo Ltd. leads on 15 and Flywire Corporation on 7.

Valuation

Metric FLYW STNE Software Infrastructure median
P/E 64.81 3.68 28.02
P/S 3.00 0.83 3.07
P/B 2.62 1.25 3.36
Price to free cash flow 13.94 3.06 17.12
EV/EBITDA 26.34 2.32 14.91
EV/Sales 2.61 1.31 3.03
Earnings yield 1.54% 27.20% 0.13%
Free cash flow yield 7.17% 32.72% 1.15%

Profitability

Metric FLYW STNE Software Infrastructure median
Gross margin 100.00% 73.59% 61.23%
Operating margin 5.51% 49.68% 0.00%
Net margin 4.77% 24.12% 0.00%
Free cash flow margin 21.54% 27.20% 1.67%
Return on equity 4.23% 33.67% 0.59%
Return on assets 2.99% 6.10% 0.00%
Return on invested capital 4.70% 27.16% 0.00%

Growth

Metric FLYW STNE Software Infrastructure median
Revenue growth (TTM) 32.21% 8.71% 13.41%
EPS growth (last fiscal year) 450.00% 265.22% —
Revenue growth, 5-year CAGR 36.44% 31.53% 15.81%
Net income growth, 5-year CAGR 0.00% 20.77% 0.00%

Health

Metric FLYW STNE Software Infrastructure median
Debt to equity 0.00 1.80 0.06
Current ratio 1.52 1.26 1.55
Net debt to EBITDA (9.18) 1.18 0.08

Dividend

Metric FLYW STNE Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric FLYW STNE Software Infrastructure median
Market cap 2.08b 2.26b 835.96m

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