Analyzing StoneCo (NASDAQ:STNE) & MSP Recovery (NASDAQ:LIFW)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
StoneCo	16.02%	13.92%	4.09%
MSP Recovery	-906.67%	-6.25%	-2.39%

Valuation & Earnings

This table compares StoneCo and MSP Recovery”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StoneCo	$12.35 billion	0.24	$318.89 million	$1.28	7.59
MSP Recovery	$10.73 million	1.22	-$56.35 million	($142.50)	-0.01

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

Risk & Volatility

StoneCo has a beta of 2.33, suggesting that its stock price is 133% more volatile than the S&P 500. Comparatively, MSP Recovery has a beta of -2.38, suggesting that its stock price is 338% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for StoneCo and MSP Recovery, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StoneCo	1	2	5	1	2.67
MSP Recovery	0	0	0	0	0.00

StoneCo presently has a consensus target price of $14.38, suggesting a potential upside of 48.04%. Given StoneCo’s stronger consensus rating and higher possible upside, research analysts clearly believe StoneCo is more favorable than MSP Recovery.

Institutional and Insider Ownership

73.2% of StoneCo shares are owned by institutional investors. Comparatively, 3.8% of MSP Recovery shares are owned by institutional investors. 11.3% of StoneCo shares are owned by company insiders. Comparatively, 86.5% of MSP Recovery shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

StoneCo beats MSP Recovery on 13 of the 15 factors compared between the two stocks.

About StoneCo

StoneCo Ltd. provides financial technology and software solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and sells solutions to brick-and-mortar and digital merchants through sales team. The company served small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and integrated software vendors. StoneCo Ltd. was founded in 2000 and is headquartered in George Town, the Cayman Islands.

About MSP Recovery

MSP Recovery, Inc., doing business as LifeWallet, operates as a healthcare recovery and data analytics company in the United States and Puerto Rico. The company offers claims recovery services, including services to related parties or third parties to assist entities with pursuit of claims recovery rights. It also provides LifeWallet, a scalable and expandable data ecosystem where tokenized data is stored in a platform with multiple applications, including LifeWallet EHR for hospitals, medical providers, major medical laboratories, and governmental entities that gather and store electronic health records; Chase to Pay, a real-time, or near real-time analytics driven platform that identifies the proper primary payer at the point of care; LifeChain which is in development in order to tokenize healthcare claims and patient records using blockchain technology; LifeWallet 911 which is in development for utilization by emergency service organizations; LifeWallet Legal; LifeWallet Health; and LifeWallet Sports which connected brands with college athletes. MSP Recovery, Inc. was founded in 2014 and is headquartered in Coral Gables, Florida.