StoneCo (NASDAQ:STNE) and RESAAS Services (OTCMKTS:RSASF) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Profitability

This table compares StoneCo and RESAAS Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
StoneCo 28.74% 12.29% 4.32%
RESAAS Services -413.02% -229.53% -147.18%

Volatility and Risk

StoneCo has a beta of 2.22, indicating that its share price is 122% more volatile than the S&P 500. Comparatively, RESAAS Services has a beta of -1.87, indicating that its share price is 287% less volatile than the S&P 500.

Insider & Institutional Ownership

44.2% of StoneCo shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares StoneCo and RESAAS Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
StoneCo $414.74 million 27.24 $82.42 million $0.33 123.58
RESAAS Services $480,000.00 28.68 -$4.51 million N/A N/A

StoneCo has higher revenue and earnings than RESAAS Services.

Analyst Ratings

This is a summary of current ratings and recommmendations for StoneCo and RESAAS Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StoneCo 1 3 8 0 2.58
RESAAS Services 0 0 1 0 3.00

StoneCo presently has a consensus price target of $38.45, indicating a potential downside of 5.70%. Given StoneCo’s higher possible upside, research analysts plainly believe StoneCo is more favorable than RESAAS Services.

Summary

StoneCo beats RESAAS Services on 9 of the 11 factors compared between the two stocks.

About StoneCo

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.

About RESAAS Services

RESAAS Services Inc. develops cloud-based social business platform for the real estate services industry. The company offers a suite of tools, which integrate with the platform, including an enterprise social network, a global referral network, lead generation engine, listing management, client engagement modules, customer relationship management tools, analytics, file sharing, and advertising engine. It provides its tools and functionality primarily to owners of real estate brokerage firms and brokers, licensed real estate agents, and realtors. The company was incorporated in 2009 and is headquartered in Vancouver, Canada. RESAAS Services Inc. is a subsidiary of The Canadian Depository for Securities Limited.

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