Financial Review: Himalaya Technologies (OTCMKTS:HMLA) versus StoneCo (NASDAQ:STNE)

StoneCo (NASDAQ:STNE) and Himalaya Technologies (OTCMKTS:HMLA) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Profitability

This table compares StoneCo and Himalaya Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StoneCo	22.92%	22.19%	4.10%
Himalaya Technologies	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for StoneCo and Himalaya Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StoneCo	0	6	4	0	2.40
Himalaya Technologies	0	0	0	0	0.00

StoneCo currently has a consensus target price of $14.59, indicating a potential upside of 50.06%. Given StoneCo’s stronger consensus rating and higher possible upside, research analysts plainly believe StoneCo is more favorable than Himalaya Technologies.

Earnings & Valuation

This table compares StoneCo and Himalaya Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StoneCo	$13.59 billion	0.18	$425.73 million	$2.48	3.92
Himalaya Technologies	N/A	N/A	N/A	N/A	N/A

StoneCo has higher revenue and earnings than Himalaya Technologies.

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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

StoneCo has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Himalaya Technologies has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

Summary

StoneCo beats Himalaya Technologies on 10 of the 10 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 Himalaya Technologies

Himalaya Technologies, Inc., a development stage company, provides information services for the cannabis industry in the United States. It operates Kanab.Club, a social site for health and wellness products and services in the cannabis media market. The company was formerly known as Homeland Resources Ltd. The company was incorporated in 2003 and is headquartered in Pittsburgh, Pennsylvania.