StoneCo Ltd. (STNE) vs Teradata Corporation (TDC)

StoneCo Ltd. and Teradata Corporation are both Software Infrastructure companies. StoneCo Ltd. and Teradata Corporation are of similar size ($2.9B and $2.8B). StoneCo Ltd. trades at the lower P/E: 4.5× against 6.2×. StoneCo Ltd. grew revenue faster over the last twelve months: 8.71% against 0.96%. Teradata Corporation has the higher net margin (27.1% vs 24.1%) and the higher return on invested capital (35.4% vs 27.2%). Across the 22 metrics below, StoneCo Ltd. leads on 14 and Teradata Corporation on 8.

Valuation

Metric STNE TDC Software Infrastructure median
P/E 4.46 6.18 28.38
P/S 1.01 1.69 2.98
P/B 1.51 4.81 2.93
Price to free cash flow 3.71 3.88 16.28
EV/EBITDA 2.63 11.29 13.92
EV/Sales 1.48 1.48 2.90
Earnings yield 22.43% 16.17% 0.14%
Free cash flow yield 26.98% 25.75% 1.24%

Profitability

Metric STNE TDC Software Infrastructure median
Gross margin 73.59% 60.79% 61.00%
Operating margin 49.68% 7.51% 0.00%
Net margin 24.12% 27.08% 0.00%
Free cash flow margin 27.20% 43.41% 1.67%
Return on equity 33.67% 119.12% 0.60%
Return on assets 6.10% 26.98% 0.00%
Return on invested capital 27.16% 35.44% 0.00%

Growth

Metric STNE TDC Software Infrastructure median
Revenue growth (TTM) 8.71% 0.96% 13.41%
EPS growth (last fiscal year) 265.22% 16.38% 27.10%
Revenue growth, 5-year CAGR 31.53% (1.96%) 15.57%
Net income growth, 5-year CAGR 20.77% 0.15% 0.00%

Health

Metric STNE TDC Software Infrastructure median
Debt to equity 1.80 0.08 0.05
Current ratio 1.26 0.91 1.55
Net debt to EBITDA 1.18 0.03 0.08

Dividend

Metric STNE TDC Software Infrastructure median
Dividend yield 0.00% — 1.20%
Payout ratio 0.00 — 0.29

Size

Metric STNE TDC Software Infrastructure median
Market cap 2.77b 2.91b 752.37m

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