XP vs STNE

For growth investors, XP Inc.

(XP) is the stronger pick with 34. 1% revenue growth year-over-year, versus -74. 0% for StoneCo Ltd. (STNE). StoneCo Ltd. (STNE) offers the better valuation at 6. 6x trailing P/E (1. 0x forward), making it the more compelling value choice. Analysts rate XP Inc. (XP) a "Buy" — based on 9 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.

On trailing P/E, StoneCo Ltd.

(STNE) is the cheapest at 6. 6x versus XP Inc. at 11. 3x. On forward P/E, StoneCo Ltd. is actually cheaper at 1. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: StoneCo Ltd. wins at 0. 04x versus XP Inc. 's 0. 05x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, XP Inc.

(XP) delivered a total return of -53. 2%, compared to -78. 3% for StoneCo Ltd. (STNE). Over 10 years, the gap is even starker: XP returned -39. 2% versus STNE's -56. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), StoneCo Ltd.

(STNE) is the lower-risk stock at 1. 67β versus XP Inc. 's 1. 67β — meaning XP is approximately 0% more volatile than STNE relative to the S&P 500. On balance sheet safety, StoneCo Ltd. (STNE) carries a lower debt/equity ratio of 159% versus 6% for XP Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), XP Inc.

(XP) is pulling ahead at 34. 1% versus -74. 0% for StoneCo Ltd. (STNE). On earnings-per-share growth, the picture is similar: StoneCo Ltd. grew EPS 265. 9% year-over-year, compared to 14. 9% for XP Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

StoneCo Ltd.

(STNE) is the more profitable company, earning 68. 6% net margin versus 22. 7% for XP Inc. — meaning it keeps 68. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: XP leads at -19. 7% versus -90. 2% for STNE. At the gross margin level — before operating expenses — XP leads at 9. 5%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, StoneCo Ltd. (STNE) is the more undervalued stock at a PEG of 0. 04x versus XP Inc. 's 0. 05x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, StoneCo Ltd. (STNE) trades at 1. 0x forward P/E versus 1. 7x for XP Inc. — 0. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for STNE: 72. 1% to $19. 00.

In this comparison, XP (4.

0% yield) pays a dividend. STNE does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, XP Inc.

(XP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (4. 0% yield). StoneCo Ltd. (STNE) carries a higher beta of 1. 67 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (XP: -39. 2%, STNE: -56. 7%), 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.

These companies operate in different sectors (XP (Financial Services) and STNE (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: XP is a small-cap high-growth stock; STNE is a small-cap deep-value stock. XP pays a dividend while STNE does not, making them suitable for different income and tax situations. 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.