Which Is a Better Investment, Dave Inc or StoneCo Ltd Stock?

Sifting through countless of stocks in the Fintech industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in StoneCo Ltd or Dave Inc because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how StoneCo Ltd and Dave Inc compare based on key financial metrics to determine which better meets your investment needs.

About StoneCo Ltd and Dave Inc

StoneCo Ltd. is a provider of financial technology and software solutions. The Company has designed a cloud-based technology platform, namely the Stone Business Model for its clients to connect, get paid and grow their businesses. The Company’s business includes financial services and software. In financial services, it offers payments solutions, digital banking, credit and insurance solutions. In software, the Company offers point of sale (POS) and enterprise resource planning (ERP) solutions for different retail and services verticals, customer relationship management (CRM), engagement tools, omnichannel solutions (OMS), among others. It provides digital product enhancements to merchants in improving their consumers’ experience, such as split-payment processing, multi-payment processing, recurring payments for subscriptions, and one-click buy functionality. The Company also provide insurance solutions, including store, life (regular or whole life) and health insurance.

Dave Inc. is engaged in providing personal financial management service. The Company provide its members a suite of financial software and services related to personal finance. The Company’s personal financial management service enables Members to monitor their bank account balances to avoid overdraft fees and build budgets to assist in short-term financial planning. The Company product platform includes Insights, ExtraCash, Side Hustle, and Dave Banking. Insights is a tool that helps members understand their spending and savings habits and learn better financial management. It offers cash advances through its flagship 0% interest ExtraCash product. It also helps members generate extra income for spending or emergencies through its Side Hustle product. The Company offer a range of financial products and services through a single platform delivered via a mobile application.

Latest Fintech and StoneCo Ltd, Dave Inc Stock News

As of January 9, 2023, StoneCo Ltd had a $2.9 billion market capitalization, compared to the Fintech median of $287.8 million. StoneCo Ltd’s stock is NA in 2023, NA in the previous five trading days and down 41.36% in the past year.

Currently, StoneCo Ltd does not have a price-earnings ratio. StoneCo Ltd’s trailing 12-month revenue is $1.9 billion with a -13.8% net profit margin. Year-over-year quarterly sales growth most recently was 70.7%. Analysts expect adjusted earnings to reach $1.613 per share for the current fiscal year. StoneCo Ltd does not currently pay a dividend.

Currently, Dave Inc does not have a price-earnings ratio. Dave Inc’s trailing 12-month revenue is $186.3 million with a -65.8% net profit margin. Year-over-year quarterly sales growth most recently was -49.2%. Analysts expect adjusted earnings to reach $-11.264 per share for the current fiscal year. Dave Inc does not currently pay a dividend.

How We Compare StoneCo Ltd and Dave Inc Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at StoneCo Ltd and Dave Inc’s stock grades to see how they measure up against one another.

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