Contrasting Bitauto (NYSE:BITA) & StoneCo (STNE)

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StoneCo (NASDAQ:STNE) and Bitauto (NYSE:BITA) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Valuation and Earnings

This table compares StoneCo and Bitauto’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
StoneCo $414.74 million 17.72 $91.43 million $0.33 80.39
Bitauto $1.54 billion 0.53 -$87.68 million $1.40 7.95

StoneCo has higher earnings, but lower revenue than Bitauto. Bitauto is trading at a lower price-to-earnings ratio than StoneCo, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares StoneCo and Bitauto’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
StoneCo N/A N/A N/A
Bitauto -5.67% -0.42% -0.14%

Analyst Ratings

This is a breakdown of recent recommendations for StoneCo and Bitauto, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StoneCo 1 3 2 0 2.17
Bitauto 0 3 1 0 2.25

StoneCo currently has a consensus target price of $31.60, indicating a potential upside of 19.11%. Bitauto has a consensus target price of $26.25, indicating a potential upside of 135.85%. Given Bitauto’s stronger consensus rating and higher possible upside, analysts plainly believe Bitauto is more favorable than StoneCo.

Institutional and Insider Ownership

35.0% of StoneCo shares are owned by institutional investors. Comparatively, 37.1% of Bitauto shares are owned by institutional investors. 17.0% of Bitauto shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

StoneCo beats Bitauto on 7 of the 13 factors compared between the two stocks.

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.

Bitauto Company Profile

Bitauto Holdings Limited, through its subsidiaries, provides Internet content and marketing services, and transaction services for the automobile industry in the People's Republic of China. It operates in three segments: Advertising and Subscription Business, Transaction Services Business, and Digital Marketing Solutions Business. The Advertising and Subscription Business segment offers advertising services, including automobile pricing and promotional information, specifications, reviews, and consumer feedback to automakers through its bitauto.com Website and related mobile applications. It also provides transaction-focused online advertisement and promotional services for automakers, automobile dealers, auto finance partners, and insurance companies; and Web-based and mobile-based integrated digital marketing solutions to automobile dealers. The Transaction Services Business segment operates an online automobile retail transaction platform, which provides transaction platform and self-operated financing services. The Digital Marketing Solutions Business segment offers one-stop digital marketing solutions, including Website creation and maintenance, online public relation, online marketing campaign, advertising agency, big data application, and digital image creation services for automakers. The company also distributes its dealer customers' automobile pricing and promotional information through its Internet service provider partners. Bitauto Holdings Limited was founded in 2000 and is headquartered in Beijing, the People's Republic of China.

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