GigaCloud Technology Inc. (GCT) vs StoneCo Ltd. (STNE)

GigaCloud Technology Inc. and StoneCo Ltd. are both Software Infrastructure companies. GigaCloud Technology Inc. and StoneCo Ltd. are of similar size ($2.0B and $1.8B). StoneCo Ltd. trades at the lower P/E: 2.9× against 12.9×. GigaCloud Technology Inc. grew revenue faster over the last twelve months: 22.9% against 8.71%. StoneCo Ltd. has the higher net margin (24.1% vs 10.7%) and the lower return on invested capital (27.2% vs 68.3%). Across the 22 metrics below, StoneCo Ltd. leads on 13 and GigaCloud Technology Inc. on 9.

Valuation

Metric GCT STNE Software Infrastructure median
P/E 12.94 2.93 26.15
P/S 1.36 0.66 2.87
P/B 3.74 0.99 2.94
Price to free cash flow 12.67 2.43 17.26
EV/EBITDA 9.04 2.02 15.00
EV/Sales 1.11 1.14 2.95
Earnings yield 7.73% 34.14% 0.00%
Free cash flow yield 7.90% 41.07% 0.39%

Profitability

Metric GCT STNE Software Infrastructure median
Gross margin 23.96% 73.59% 59.21%
Operating margin 11.65% 49.68% 0.00%
Net margin 10.65% 24.12% 0.00%
Free cash flow margin 10.76% 27.20% 0.00%
Return on equity 32.34% 33.67% 0.00%
Return on assets 13.25% 6.10% 0.00%
Return on invested capital 68.33% 27.16% 0.00%

Growth

Metric GCT STNE Software Infrastructure median
Revenue growth (TTM) 22.86% 8.71% 13.57%
EPS growth (last fiscal year) 17.70% 265.22% 20.22%
Revenue growth, 5-year CAGR 36.17% 31.53% 16.02%
Net income growth, 5-year CAGR 60.35% 20.77% 0.00%

Health

Metric GCT STNE Software Infrastructure median
Debt to equity 0.00 1.80 0.02
Current ratio 2.09 1.26 1.54
Net debt to EBITDA (2.71) 1.18 0.05

Dividend

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

Size

Metric GCT STNE Software Infrastructure median
Market cap 1.95b 1.80b 655.75m

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