Contrasting Brookfield Wealth Solutions (NYSE:BNT) and StoneCo (NASDAQ:STNE)

StoneCo (NASDAQ:STNE) and Brookfield Wealth Solutions (NYSE:BNT) are both finance 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.

Profitability

This table compares StoneCo and Brookfield Wealth Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StoneCo	22.92%	22.19%	4.10%
Brookfield Wealth Solutions	0.15%	0.10%	0.01%

Institutional and Insider Ownership

73.2% of StoneCo shares are held by institutional investors. Comparatively, 20.3% of Brookfield Wealth Solutions shares are held by institutional investors. 11.3% of StoneCo shares are held by company insiders. Comparatively, 1.0% of Brookfield Wealth Solutions 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.

Risk and Volatility

StoneCo has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, Brookfield Wealth Solutions has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.

Valuation & Earnings

This table compares StoneCo and Brookfield Wealth Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StoneCo	$13.59 billion	0.22	$425.73 million	$2.48	4.77
Brookfield Wealth Solutions	$12.06 billion	1.03	$766.00 million	$0.26	141.48

Brookfield Wealth Solutions has lower revenue, but higher earnings than StoneCo. StoneCo is trading at a lower price-to-earnings ratio than Brookfield Wealth Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StoneCo	0	6	4	0	2.40
Brookfield Wealth Solutions	0	1	0	0	2.00

StoneCo currently has a consensus target price of $14.30, suggesting a potential upside of 20.83%. Given StoneCo’s stronger consensus rating and higher possible upside, equities research analysts plainly believe StoneCo is more favorable than Brookfield Wealth Solutions.

Summary

StoneCo beats Brookfield Wealth Solutions on 11 of the 14 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 Brookfield Wealth Solutions

Brookfield Wealth Solutions is focused on securing the financial futures of individuals and institutions through a range of retirement services, wealth protection products and tailored capital solutions. Through our operating subsidiaries, we offer a broad range of insurance products and services, including annuities, personal and commercial property and casualty insurance and life insurance.The company was incorporated in 2020 and is headquartered in Pembroke, Bermuda.