Comprehensive Stock Comparison
Compare StoneCo Ltd. (STNE) vs Block, Inc. (XYZ) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | STNE | 14.9% revenue growth vs XYZ's 0.3% |
| Value | STNE | Lower P/E (1.5x vs 19.0x) |
| Quality / Margins | XYZ | 5.4% net margin vs STNE's -31.3% |
| Stability / Safety | STNE | Beta 1.02 vs XYZ's 1.59 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | STNE | +81.6% vs XYZ's -2.5% |
| Efficiency (ROA) | XYZ | 3.3% ROA vs STNE's -2.3%, ROIC 6.4% vs -7.2% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
StoneCo is a Brazilian financial technology company that provides payment processing and digital commerce solutions primarily to small and medium-sized businesses. It generates revenue mainly from transaction fees on payment processing—both in-store and online—alongside software subscription fees and financial services. The company's competitive advantage lies in its hyper-local distribution network of Stone Hubs, which offer personalized service and deep market penetration across Brazil's fragmented merchant landscape.
Block is a financial technology company that provides payment processing and business software tools primarily for small and medium-sized businesses. It generates revenue primarily from transaction fees on payment processing — about 90% of total revenue — with additional income from subscription services, hardware sales, and banking services like Cash App. The company's key advantage is its integrated ecosystem that combines payment hardware, software, and banking services, creating network effects and high switching costs for merchants.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
XYZ leads in 2 of 6 categories (Financial Metrics, Profitability & Efficiency). STNE leads in 2 (Total Returns, Risk & Volatility). 1 tied.
Financial Metrics (TTM)
XYZ is the larger business by revenue, generating $24.2B annually — 5.7x STNE's $4.2B. XYZ is the more profitable business, keeping 5.4% of every revenue dollar as net income compared to STNE's -31.3%. On growth, XYZ holds the edge at +3.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | STNEStoneCo Ltd. | XYZBlock, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $4.2B | $24.2B |
| EBITDAEarnings before interest/tax | -$1.5B | $1.7B |
| Net IncomeAfter-tax profit | -$1.3B | $1.3B |
| Free Cash FlowCash after capex | -$1.4B | $2.4B |
| Gross MarginGross profit ÷ Revenue | +12.7% | +42.8% |
| Operating MarginEBIT ÷ Revenue | -59.1% | +7.1% |
| Net MarginNet income ÷ Revenue | -31.3% | +5.4% |
| FCF MarginFCF ÷ Revenue | -33.6% | +10.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | -15.7% | +3.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +36.5% | -93.8% |
Valuation Metrics
| Metric | STNEStoneCo Ltd. | XYZBlock, Inc. |
|---|---|---|
| Market CapShares × price | $4.1B | $38.4B |
| Enterprise ValueMkt cap + debt − cash | $5.6B | $39.1B |
| Trailing P/EPrice ÷ TTM EPS | -17.28x | 30.33x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.50x | 19.00x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.83x |
| EV / EBITDAEnterprise value multiple | — | 22.87x |
| Price / SalesMarket cap ÷ Revenue | 3.67x | 1.59x |
| Price / BookPrice ÷ Book value/share | 2.21x | 1.79x |
| Price / FCFMarket cap ÷ FCF | — | 15.82x |
Profitability & Efficiency
XYZ delivers a 5.9% return on equity — every $100 of shareholder capital generates $6 in annual profit, vs $-11 for STNE. XYZ carries lower financial leverage with a 0.33x debt-to-equity ratio, signaling a more conservative balance sheet compared to STNE's 1.09x. On the Piotroski fundamental quality scale (0–9), XYZ scores 6/9 vs STNE's 3/9, reflecting solid financial health.
| Metric | STNEStoneCo Ltd. | XYZBlock, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | -11.2% | +5.9% |
| ROA (TTM)Return on assets | -2.3% | +3.3% |
| ROICReturn on invested capital | -7.2% | +6.4% |
| ROCEReturn on capital employed | -8.7% | +6.0% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 6 |
| Debt / EquityFinancial leverage | 1.09x | 0.33x |
| Net DebtTotal debt minus cash | $7.7B | $725M |
| Cash & Equiv.Liquid assets | $5.2B | $6.6B |
| Total DebtShort + long-term debt | $12.9B | $7.3B |
| Interest CoverageEBIT ÷ Interest expense | 0.79x | 13.21x |
Total Returns (with DRIP)
A $10,000 investment in XYZ five years ago would be worth $2,643 today (with dividends reinvested), compared to $1,874 for STNE. Over the past 12 months, STNE leads with a +81.6% total return vs XYZ's -2.5%. The 3-year compound annual growth rate (CAGR) favors STNE at 25.4% vs XYZ's -6.0% — a key indicator of consistent wealth creation.
| Metric | STNEStoneCo Ltd. | XYZBlock, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +14.4% | -2.2% |
| 1-Year ReturnPast 12 months | +81.6% | -2.5% |
| 3-Year ReturnCumulative with dividends | +97.4% | -17.0% |
| 5-Year ReturnCumulative with dividends | -81.3% | -73.6% |
| 10-Year ReturnCumulative with dividends | -46.4% | +510.2% |
| CAGR (3Y)Annualised 3-year return | +25.4% | -6.0% |
Risk & Volatility
STNE is the less volatile stock with a 1.02 beta — it tends to amplify market swings less than XYZ's 1.59 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. STNE currently trades 84.2% from its 52-week high vs XYZ's 77.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | STNEStoneCo Ltd. | XYZBlock, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.02x | 1.59x |
| 52-Week HighHighest price in past year | $19.95 | $82.50 |
| 52-Week LowLowest price in past year | $8.64 | $44.27 |
| % of 52W HighCurrent price vs 52-week peak | +84.2% | +77.2% |
| RSI (14)Momentum oscillator 0–100 | 51.4 | 45.6 |
| Avg Volume (50D)Average daily shares traded | 4.2M | 5.8M |
Analyst Outlook
Wall Street rates STNE as "Buy" and XYZ as "Buy". Consensus price targets imply 32.9% upside for XYZ (target: $85) vs 21.3% for STNE (target: $20).
| Metric | STNEStoneCo Ltd. | XYZBlock, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $20.38 | $84.67 |
| # AnalystsCovering analysts | 20 | 33 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +7.5% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| StoneCo Ltd. (STNE) | 100 | 38.25 | -61.8% |
| Block, Inc. (XYZ) | 100 | 76.61 | -23.4% |
Block, Inc. (XYZ) returned -74% over 5 years vs StoneCo Ltd. (STNE)'s -81%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| StoneCo Ltd. (STNE) | $165M | $5.8B | +3429.3% |
| Block, Inc. (XYZ) | $1.7B | $24.2B | +1315.9% |
Block, Inc.'s revenue grew from $1.7B (2016) to $24.2B (2025) — a 34.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| StoneCo Ltd. (STNE) | -66.5% | -29.9% | +55.0% |
| Block, Inc. (XYZ) | -10.0% | 5.4% | +153.7% |
Block, Inc.'s net margin went from -10% (2016) to 5% (2025).
Chart 4P/E Ratio History — 7 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| StoneCo Ltd. (STNE) | 16.8 | 3.6 | -78.6% |
| Block, Inc. (XYZ) | 77.2 | 31 | -59.8% |
StoneCo Ltd. has traded in a 4x–29x P/E range over 4 years; current trailing P/E is ~-17x. Block, Inc. has traded in a 19x–495x P/E range over 5 years; current trailing P/E is ~30x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| StoneCo Ltd. (STNE) | -0.58 | -5.02 | -765.5% |
| Block, Inc. (XYZ) | -0.5 | 2.1 | +520.0% |
Block, Inc.'s EPS grew from $-0.50 (2016) to $2.10 (2025).
Chart 6Free Cash Flow — 5 Years
StoneCo Ltd. generated $-5B FCF in 2024 (-312% vs 2021). Block, Inc. generated $2B FCF in 2025 (+346% vs 2021).
STNE vs XYZ: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is STNE or XYZ a better buy right now?
Block, Inc. (XYZ) offers the better valuation at 30.3x trailing P/E (19.0x forward), making it the more compelling value choice. Analysts rate StoneCo Ltd. (STNE) a "Buy" — based on 20 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — STNE or XYZ?
On forward P/E, StoneCo Ltd. is actually cheaper at 1.5x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — STNE or XYZ?
Over the past 5 years, Block, Inc. (XYZ) delivered a total return of -73.6%, compared to -81.3% for StoneCo Ltd. (STNE). A $10,000 investment in XYZ five years ago would be worth approximately $3K today (assuming dividends reinvested). Over 10 years, the gap is even starker: XYZ returned +510.2% versus STNE's -46.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — STNE or XYZ?
By beta (market sensitivity over 5 years), StoneCo Ltd. (STNE) is the lower-risk stock at 1.02β versus Block, Inc.'s 1.59β — meaning XYZ is approximately 56% more volatile than STNE relative to the S&P 500. On balance sheet safety, Block, Inc. (XYZ) carries a lower debt/equity ratio of 33% versus 109% for StoneCo Ltd. — giving it more financial flexibility in a downturn.
05Which has better profit margins — STNE or XYZ?
Block, Inc. (XYZ) is the more profitable company, earning 5.4% net margin versus -29.9% for StoneCo Ltd. — meaning it keeps 5.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: XYZ leads at 7.1% versus -30.9% for STNE. At the gross margin level — before operating expenses — XYZ leads at 42.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is STNE or XYZ more undervalued right now?
On forward earnings alone, StoneCo Ltd. (STNE) trades at 1.5x forward P/E versus 19.0x for Block, Inc. — 17.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for XYZ: 32.9% to $84.67.
07Which pays a better dividend — STNE or XYZ?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is STNE or XYZ better for a retirement portfolio?
For long-horizon retirement investors, StoneCo Ltd. (STNE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.02)). Block, Inc. (XYZ) carries a higher beta of 1.59 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (STNE: -46.4%, XYZ: +510.2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between STNE and XYZ?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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