Financial Analysis: Global Engine Group (NASDAQ:GLE) versus StoneCo (NASDAQ:STNE)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Global Engine Group and StoneCo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Engine Group	0	0	0	0	0.00
StoneCo	1	2	6	1	2.70

StoneCo has a consensus target price of $14.38, indicating a potential upside of 28.58%. Given StoneCo’s stronger consensus rating and higher probable upside, analysts clearly believe StoneCo is more favorable than Global Engine Group.

Earnings & Valuation

This table compares Global Engine Group and StoneCo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Engine Group	$49.45 million	0.71	N/A	N/A	N/A
StoneCo	$12.35 billion	0.28	$318.89 million	($0.85)	-13.15

StoneCo has higher revenue and earnings than Global Engine Group.

Profitability

This table compares Global Engine Group and StoneCo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Engine Group	N/A	N/A	N/A
StoneCo	16.02%	13.92%	4.09%

Institutional and Insider Ownership

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

Summary

StoneCo beats Global Engine Group on 10 of the 11 factors compared between the two stocks.

About Global Engine Group

Global Engine Group Holding Limited provides integrated solutions in the information communication technologies (ICT), system integration, and other technical consultation service areas in Hong Kong. The company offers ICT solution services, including cloud platform deployment, IT system design, configuration, maintenance, and data center colocation and cloud services; technical services, such as technical development, support, and outsourcing services for data center and cloud computing infrastructure, mobility and fixed network communications, and Internet-of-things (IoT) projects; and project management services. It serves telecom operators; data center and cloud computing services providers; and IoT solutions providers, resellers, and users. The company was incorporated in 2021 and is based in Kwun Tong, Hong Kong.

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.