Grab (NASDAQ:GRAB – Get Free Report) and StoneCo (NASDAQ:STNE – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
Profitability
This table compares Grab and StoneCo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grab | 7.92% | 4.09% | 2.42% |
| StoneCo | -7.28% | 20.18% | 4.23% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Grab and StoneCo, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grab | 0 | 1 | 5 | 1 | 3.00 |
| StoneCo | 3 | 2 | 7 | 0 | 2.33 |
Volatility and Risk
Grab has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, StoneCo has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500.
Institutional & Insider Ownership
55.5% of Grab shares are held by institutional investors. Comparatively, 73.2% of StoneCo shares are held by institutional investors. 3.6% of Grab shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Grab and StoneCo”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grab | $3.37 billion | 4.94 | $268.00 million | $0.03 | 137.67 |
| StoneCo | $2.46 billion | 1.96 | -$280.92 million | ($0.54) | -31.22 |
Grab has higher revenue and earnings than StoneCo. StoneCo is trading at a lower price-to-earnings ratio than Grab, indicating that it is currently the more affordable of the two stocks.
Summary
Grab beats StoneCo on 10 of the 15 factors compared between the two stocks.
About Grab
Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.
About StoneCo
StoneCo Ltd. provides financial technology and software solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and sells solutions to brick-and-mortar and digital merchants through sales team. The company served small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and integrated software vendors. StoneCo Ltd. was founded in 2000 and is headquartered in George Town, the Cayman Islands.
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