LiveRamp Holdings, Inc. (RAMP) vs StoneCo Ltd. (STNE)

LiveRamp Holdings, Inc. and StoneCo Ltd. are both Software Infrastructure companies. LiveRamp Holdings, Inc. and StoneCo Ltd. are of similar size ($2.3B and $2.3B). StoneCo Ltd. trades at the lower P/E: 3.7× against 15.1×. LiveRamp Holdings, Inc. grew revenue faster over the last twelve months: 8.85% against 8.71%. StoneCo Ltd. has the higher net margin (24.1% vs 18.7%) and the higher return on invested capital (27.2% vs 9.94%). Across the 22 metrics below, StoneCo Ltd. leads on 16 and LiveRamp Holdings, Inc. on 6.

Valuation

Metric RAMP STNE Software Infrastructure median
P/E 15.12 3.68 28.02
P/S 2.73 0.83 3.07
P/B 2.32 1.25 3.36
Price to free cash flow 11.41 3.06 17.12
EV/EBITDA 17.71 2.32 14.91
EV/Sales 2.34 1.31 3.03
Earnings yield 6.61% 27.20% 0.13%
Free cash flow yield 8.76% 32.72% 1.15%

Profitability

Metric RAMP STNE Software Infrastructure median
Gross margin 70.82% 73.59% 61.23%
Operating margin 11.59% 49.68% 0.00%
Net margin 18.71% 24.12% 0.00%
Free cash flow margin 23.90% 27.20% 1.67%
Return on equity 16.18% 33.67% 0.59%
Return on assets 12.40% 6.10% 0.00%
Return on invested capital 9.94% 27.16% 0.00%

Growth

Metric RAMP STNE Software Infrastructure median
Revenue growth (TTM) 8.85% 8.71% 13.41%
EPS growth (last fiscal year) 22,500.00% 265.22% —
Revenue growth, 5-year CAGR 12.91% 31.53% 15.81%
Net income growth, 5-year CAGR 0.00% 20.77% 0.00%

Health

Metric RAMP STNE Software Infrastructure median
Debt to equity 0.00 1.80 0.06
Current ratio 2.66 1.26 1.55
Net debt to EBITDA (4.00) 1.18 0.08

Dividend

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

Size

Metric RAMP STNE Software Infrastructure median
Market cap 2.28b 2.26b 835.96m

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