PagSeguro Digital Ltd. (PAGS) vs StoneCo Ltd. (STNE)

PagSeguro Digital Ltd. and StoneCo Ltd. are both Software Infrastructure companies. PagSeguro Digital Ltd. is the larger, with a market value of $2.5B against $2.3B — 1.1× the size. StoneCo Ltd. trades at the lower P/E: 3.7× against 6.3×. PagSeguro Digital Ltd. grew revenue faster over the last twelve months: 12.3% against 8.71%. StoneCo Ltd. has the higher net margin (24.1% vs 10.5%) and the lower return on invested capital (27.2% vs 32.6%). Across the 22 metrics below, StoneCo Ltd. leads on 13 and PagSeguro Digital Ltd. on 9.

Valuation

Metric PAGS STNE Software Infrastructure median
P/E 6.33 3.68 28.02
P/S 0.64 0.83 3.07
P/B 0.84 1.25 3.36
Price to free cash flow 3.50 3.06 17.12
EV/EBITDA 1.32 2.32 14.91
EV/Sales 0.65 1.31 3.03
Earnings yield 15.80% 27.20% 0.13%
Free cash flow yield 28.53% 32.72% 1.15%

Profitability

Metric PAGS STNE Software Infrastructure median
Gross margin 53.30% 73.59% 61.23%
Operating margin 40.07% 49.68% 0.00%
Net margin 10.47% 24.12% 0.00%
Free cash flow margin 18.36% 27.20% 1.67%
Return on equity 14.69% 33.67% 0.59%
Return on assets 2.96% 6.10% 0.00%
Return on invested capital 32.55% 27.16% 0.00%

Growth

Metric PAGS STNE Software Infrastructure median
Revenue growth (TTM) 12.27% 8.71% 13.41%
EPS growth (last fiscal year) 12.39% 265.22% —
Revenue growth, 5-year CAGR 22.56% 31.53% 15.81%
Net income growth, 5-year CAGR 8.65% 20.77% 0.00%

Health

Metric PAGS STNE Software Infrastructure median
Debt to equity 0.10 1.80 0.06
Current ratio 1.55 1.26 1.55
Net debt to EBITDA 0.00 1.18 0.08

Dividend

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

Size

Metric PAGS STNE Software Infrastructure median
Market cap 2.51b 2.26b 835.96m

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