Financial Review: Auddia (NASDAQ:AUUD) & StoneCo (NASDAQ:STNE)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StoneCo	$2.41 billion	1.72	$318.89 million	$1.11	11.88
Auddia	N/A	N/A	-$8.81 million	N/A	N/A

StoneCo has higher revenue and earnings than Auddia.

Risk and Volatility

StoneCo has a beta of 2.32, meaning that its stock price is 132% more volatile than the S&P 500. Comparatively, Auddia has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for StoneCo and Auddia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StoneCo	0	1	8	0	2.89
Auddia	0	1	0	0	2.00

StoneCo currently has a consensus target price of $18.89, suggesting a potential upside of 43.21%. Given StoneCo’s stronger consensus rating and higher possible upside, equities research analysts plainly believe StoneCo is more favorable than Auddia.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
StoneCo	14.08%	12.35%	3.85%
Auddia	N/A	-388.77%	-145.34%

Institutional and Insider Ownership

73.2% of StoneCo shares are held by institutional investors. 11.3% of StoneCo shares are held by company insiders. Comparatively, 12.5% of Auddia shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

StoneCo beats Auddia on 10 of the 11 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 Auddia

Auddia Inc., a technology company, develops AI Platform for the audio and podcast markets. The company's flagship product is faidr, which enables consumers to listen to various AM/FM radio station with commercial breaks replaced with personalized audio content, including popular and new music, news, and weather. It also provides Vodacast mobile app, an interactive differentiated podcasting that allows podcasters to give their audiences an interactive audio experience; and Podcast Hub, a content management system. The company was formerly known as Clip Interactive, LLC and changed its name to Auddia Inc. in November 2019. Auddia Inc. was founded in 2012 and is headquartered in Boulder, Colorado.