Chime Financial (NASDAQ:CHYM – Get Free Report) and StoneCo (NASDAQ:STNE – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Chime Financial and StoneCo, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chime Financial | 1 | 2 | 17 | 4 | 3.00 |
| StoneCo | 0 | 6 | 4 | 0 | 2.40 |
Chime Financial presently has a consensus target price of $36.40, indicating a potential upside of 20.01%. StoneCo has a consensus target price of $14.30, indicating a potential upside of 50.05%. Given StoneCo’s higher possible upside, analysts plainly believe StoneCo is more favorable than Chime Financial.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chime Financial | $2.19 billion | 5.25 | -$1.01 billion | ($0.07) | -433.29 |
| StoneCo | $13.59 billion | 0.17 | $425.73 million | $2.48 | 3.84 |
StoneCo has higher revenue and earnings than Chime Financial. Chime Financial is trading at a lower price-to-earnings ratio than StoneCo, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
73.2% of StoneCo shares are held by institutional investors. 12.3% of Chime Financial shares are held by insiders. Comparatively, 11.3% of StoneCo shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Chime Financial has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, StoneCo has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.
Profitability
This table compares Chime Financial and StoneCo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chime Financial | -0.74% | -1.28% | -0.92% |
| StoneCo | 22.92% | 22.19% | 4.10% |
Summary
StoneCo beats Chime Financial on 10 of the 15 factors compared between the two stocks.
About Chime Financial
Chime is a financial technology company that partners with federally regulated, FDIC-insured banks—The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC—to provide consumer banking products and services. The company’s model is designed to eliminate common fees and simplify access to basic financial services.
Chime does not charge overdraft fees, monthly service fees, or require minimum balances. All account balances are held at partner banks and protected by applicable regulatory safeguards to ensure funds remain secure and accessible.
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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