StoneCo (NASDAQ:STNE) versus CSG Systems International (NASDAQ:CSGS) Head to Head Analysis
StoneCo (NASDAQ:STNE) and CSG Systems International (NASDAQ:CSGS) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Institutional & Insider Ownership
44.2% of StoneCo shares are held by institutional investors. Comparatively, 95.2% of CSG Systems International shares are held by institutional investors. 1.9% of CSG Systems International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares StoneCo and CSG Systems International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|StoneCo||$414.74 million||28.82||$82.42 million||$0.33||130.73|
|CSG Systems International||$875.06 million||1.90||$66.13 million||$2.61||19.29|
StoneCo has higher earnings, but lower revenue than CSG Systems International. CSG Systems International is trading at a lower price-to-earnings ratio than StoneCo, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for StoneCo and CSG Systems International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CSG Systems International||0||1||1||0||2.50|
StoneCo currently has a consensus price target of $38.45, indicating a potential downside of 10.86%. CSG Systems International has a consensus price target of $58.00, indicating a potential upside of 15.22%. Given CSG Systems International’s higher probable upside, analysts clearly believe CSG Systems International is more favorable than StoneCo.
Risk and Volatility
StoneCo has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500. Comparatively, CSG Systems International has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
This table compares StoneCo and CSG Systems International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CSG Systems International||8.20%||26.74%||8.54%|
StoneCo Company Profile
StoneCo Ltd. engages in the provision of financial technology solutions. It caters to merchants and partners that conduct electronic commerce across in-store, online, and mobile channels. It offers cloud-based technology platform, electronic payments, and automation of business processes at the point-of-sale. The company was founded on March 11, 2014 and is headquartered in São Paulo, Brazil.
CSG Systems International Company Profile
CSG Systems International, Inc. provides business support solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers revenue management and digital monetization solutions, including Advanced Convergent Platform, a pre-integrated hybrid cloud-based platform; and Ascendon, Singleview, Total Service Mediation, and Wholesale Business Management Solution platforms. It also provides customer communications management solutions, such as field force automation, analytics, electronic bill presentment, ACH, etc. for processing voice, SMS/text, print, and email messages; and payment solutions, such as cloud-based integrated suite of products and solutions. In addition, the company offers managed services; and professional services to implement, configure, and maintain its products, as well as licenses products, such as mediation, partner management, rating, and charging. It serves the media, entertainment, government, insurance, and health care industries. The company was founded in 1994 and is headquartered in Greenwood Village, Colorado.
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