Analyzing Executive Network Partnering (NYSE:ENPC) & StoneCo (NASDAQ:STNE)

Executive Network Partnering (NYSE:ENPC) and StoneCo (NASDAQ:STNE) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Profitability

This table compares Executive Network Partnering and StoneCo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Executive Network Partnering	N/A	-74.23%	-2.27%
StoneCo	22.92%	22.19%	4.10%

Insider & Institutional Ownership

88.6% of Executive Network Partnering shares are owned by institutional investors. Comparatively, 73.2% of StoneCo shares are owned by institutional investors. 0.2% of Executive Network Partnering shares are owned by insiders. Comparatively, 11.3% of StoneCo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Executive Network Partnering and StoneCo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Executive Network Partnering	0	0	0	0	0.00
StoneCo	0	6	4	0	2.40

StoneCo has a consensus target price of $14.30, indicating a potential upside of 49.74%. Given StoneCo’s stronger consensus rating and higher possible upside, analysts plainly believe StoneCo is more favorable than Executive Network Partnering.

Earnings and Valuation

This table compares Executive Network Partnering and StoneCo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Executive Network Partnering	N/A	N/A	$1.47 million	N/A	N/A
StoneCo	$2.53 billion	0.94	$425.73 million	$2.48	3.85

StoneCo has higher revenue and earnings than Executive Network Partnering.

Risk & Volatility

Executive Network Partnering has a beta of -0.04, meaning that its stock price is 104% less volatile than the S&P 500. Comparatively, StoneCo has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Summary

StoneCo beats Executive Network Partnering on 10 of the 11 factors compared between the two stocks.

About Executive Network Partnering

Executive Network Partnering Corporation does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar partnering transaction with one or more businesses. The company was incorporated in 2020 and is based in Boston, Massachusetts.

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.