Infleqtion, Inc. (INFQ) vs StoneCo Ltd. (STNE)

Infleqtion, Inc. and StoneCo Ltd. are both Software Infrastructure companies. Infleqtion, Inc. and StoneCo Ltd. are of similar size ($1.9B and $1.8B). Infleqtion, Inc. has negative trailing earnings, so its P/E is not meaningful; StoneCo Ltd. trades at 2.9×. StoneCo Ltd. has the higher net margin (24.1% vs −338.6%) and the higher return on invested capital (27.2% vs −26.0%). Across the 16 metrics below, StoneCo Ltd. leads on 13 and Infleqtion, Inc. on 3.

Valuation

Metric INFQ STNE Software Infrastructure median
P/E n/m 2.93 26.15
P/S 50.46 0.66 2.87
P/B 3.21 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 37.42 1.14 2.95
Earnings yield (20.28%) 34.14% 0.00%
Free cash flow yield (0.56%) 41.07% 0.39%

Profitability

Metric INFQ STNE Software Infrastructure median
Gross margin 22.45% 73.59% 59.21%
Operating margin (147.92%) 49.68% 0.00%
Net margin (338.57%) 24.12% 0.00%
Free cash flow margin (28.13%) 27.20% 0.00%
Return on equity (43.14%) 33.67% 0.00%
Return on assets (23.38%) 6.10% 0.00%
Return on invested capital (26.00%) 27.16% 0.00%

Growth

Metric INFQ STNE Software Infrastructure median
Revenue growth (TTM) — 8.71% 13.57%
EPS growth (last fiscal year) (26,711.59%) 265.22% 20.22%
Revenue growth, 5-year CAGR — 31.53% 16.02%
Net income growth, 5-year CAGR — 20.77% 0.00%

Health

Metric INFQ STNE Software Infrastructure median
Debt to equity 0.00 1.80 0.02
Current ratio 9.34 1.26 1.54
Net debt to EBITDA 0.09 1.18 0.05

Dividend

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

Size

Metric INFQ STNE Software Infrastructure median
Market cap 1.90b 1.80b 655.75m

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