Critical comparison: StoneCo (NASDAQ:STNE) and Marin Software (NASDAQ:MRIN)


StoneCo (NASDAQ: STNEGet a rating) and Marine Software (NASDAQ: MRINGet a rating) are both IT and technology companies, but which is the best investment? We’ll compare the two companies based on earnings strength, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of StoneCo and Marin Software.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
StoneCo $894.07 million 3.39 -$251.79 million ($0.83) -11.70
marine software $24.42 million 1.29 -$12.94 million ($0.91) -2.22

Marin Software has lower revenues, but higher profits than StoneCo. StoneCo trades at a lower price-to-earnings ratio than Marin Software, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

50.5% of StoneCo shares are held by institutional investors. By comparison, 16.4% of Marin Software’s shares are held by institutional investors. 6.4% of Marin Software’s stock is held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.

Profitability

This table compares the net margins, return on equity, and return on assets of StoneCo and Marin Software.

Net margins Return on equity return on assets
StoneCo -28.64% -3.89% -1.52%
marine software -54.70% -39.79% -30.03%

Risk and Volatility

StoneCo has a beta of 2.36, which means its stock price is 136% more volatile than the S&P 500. Comparatively, Marin Software has a beta of 0.11, which means its stock price is 89% less volatile than the S&P 500.

Analyst Notes

This is a breakdown of recent recommendations for StoneCo and Marin Software, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
StoneCo 3 9 3 0 2.00
marine software 0 0 0 0 N / A

StoneCo currently has a consensus price target of $22.60, indicating a potential upside of 132.75%. Given StoneCo’s possible higher upside, equity research analysts clearly believe that StoneCo is more favorable than Marin Software.

Summary

StoneCo beats Marin Software on 10 out of 13 factors compared between the two stocks.

StoneCo Company Profile (Get a rating)

StoneCo Ltd. provides fintech solutions to merchants and integrated partners to conduct e-commerce across in-store, online and mobile channels in Brazil. It distributes its solutions, primarily through proprietary Stone Hubs, which offer hyper-local sales and services; and technology and solutions to digital merchants through sales and technical staff and software vendors, as well as selling solutions to physical and digital merchants through the sales team. As of December 31, 2021, the company served approximately 1,766,100 customers, primarily small and medium-sized businesses; and marketplaces, e-commerce platforms and integrated software providers. StoneCo Ltd. was founded in 2000 and is headquartered in George Town, Cayman Islands.

Marin Software Company Profile (Get a rating)

Marin Software Incorporated, together with its subsidiaries, provides enterprise marketing software for advertisers and agencies in the United States, United Kingdom and internationally. It offers MarinOne, a search, social and e-commerce advertising platform; Marin Search to manage advertising campaigns for advertisers and agencies; and Marin Social which allows advertisers to manage their Facebook, Instagram and Twitter ads, as well as managed services. The company markets and sells its solutions directly to advertisers and through advertising agencies that use its platform on behalf of their clients. Marin Software Incorporated was incorporated in 2006 and is headquartered in San Francisco, California.



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