In the fast-evolving software infrastructure sector, StoneCo Ltd. and Teradata Corporation stand out as key players driving innovation and digital transformation. StoneCo focuses on financial technology solutions primarily in Brazil, while Teradata delivers advanced multi-cloud data platforms globally. Both companies operate in overlapping markets with distinct strategies, making their comparison valuable for investors seeking growth and stability. This analysis will help you identify which company offers the most compelling investment opportunity today.
Table of contents
Companies Overview
I will begin the comparison between StoneCo Ltd. and Teradata Corporation by providing an overview of these two companies and their main differences.
StoneCo Ltd. Overview
StoneCo Ltd. delivers financial technology solutions focused on enabling electronic commerce for merchants and partners across Brazil. Its offerings include proprietary Stone Hubs and digital tools designed for small and medium-sized businesses, e-commerce platforms, and software vendors. Founded in 2000 and operating as a subsidiary of HR Holdings, StoneCo serves approximately 1.77M clients, positioning itself as a key fintech infrastructure provider in its market.
Teradata Corporation Overview
Teradata Corporation provides a connected multi-cloud data platform aimed at enterprise analytics, allowing companies to unify and leverage diverse data sources. Its flagship product, Teradata Vantage, supports cloud migration and analytic operations, complemented by consulting and support services. Incorporated in 1979, Teradata operates globally across sectors including financial services and healthcare, emphasizing integrated data ecosystem solutions.
Key similarities and differences
Both StoneCo and Teradata belong to the Software – Infrastructure industry, focusing on technology-driven solutions. StoneCo specializes in fintech services for commerce in Brazil, while Teradata targets enterprise data analytics globally through cloud platforms. StoneCo’s business model centers on merchant services and payments, whereas Teradata emphasizes data integration and consulting, reflecting distinct market focuses despite both leveraging software infrastructure.
Income Statement Comparison
The table below presents a side-by-side comparison of the most recent fiscal year income statement metrics for StoneCo Ltd. and Teradata Corporation, providing a clear snapshot of their financial performance.
| Metric | StoneCo Ltd. (STNE) | Teradata Corporation (TDC) |
|---|---|---|
| Market Cap | 3.9B BRL | 2.8B USD |
| Revenue | 12.7B BRL | 1.75B USD |
| EBITDA | 6.41B BRL | 293M USD |
| EBIT | 5.72B BRL | 193M USD |
| Net Income | -1.52B BRL | 114M USD |
| EPS | -5.02 | 1.18 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
StoneCo Ltd.
StoneCo’s revenue showed strong growth from 3.17B BRL in 2020 to 12.74B BRL in 2024, a favorable trend despite a net loss of -1.52B BRL in 2024. Gross and EBIT margins remained favorable at 73.4% and 44.86%, respectively, reflecting operational efficiency. However, net margin turned negative in 2024, indicating challenges beyond operating profit, with net income and EPS declining sharply.
Teradata Corporation
Teradata’s revenue slightly declined from 1.84B USD in 2020 to 1.75B USD in 2024, with a modest net income increase to 114M USD. Margins improved, with gross margin at 60.46% and EBIT margin at 11.03%, both favorable. The company saw a 31.29% rise in EBIT and a 92.59% increase in net margin growth in 2024, showing margin recovery despite overall revenue softness.
Which one has the stronger fundamentals?
Teradata demonstrates steadier profitability with positive net margins and improving earnings per share, supported by stable margins and controlled interest expenses. StoneCo exhibits impressive revenue growth and strong operating margins but faces significant net losses and margin contraction. Both show a mix of favorable and unfavorable metrics; Teradata leans towards consistent profitability, while StoneCo’s fundamentals reflect growth with elevated risk.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for StoneCo Ltd. (STNE) and Teradata Corporation (TDC) based on the most recent fiscal year data available for 2024.
| Ratios | StoneCo Ltd. (STNE) | Teradata Corporation (TDC) |
|---|---|---|
| ROE | -12.87% | 85.71% |
| ROIC | 22.41% | 16.89% |
| P/E | -9.84 | 26.34 |
| P/B | 1.27 | 22.58 |
| Current Ratio | 1.37 | 0.81 |
| Quick Ratio | 1.37 | 0.79 |
| D/E (Debt-to-Equity) | 1.10 | 4.33 |
| Debt-to-Assets | 23.53% | 33.80% |
| Interest Coverage | 5.57 | 7.21 |
| Asset Turnover | 0.23 | 1.03 |
| Fixed Asset Turnover | 6.95 | 9.07 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
Interpretation of the Ratios
StoneCo Ltd.
StoneCo Ltd. presents a mixed financial profile with 50% favorable and 42.86% unfavorable ratios. While it benefits from strong returns on invested capital (22.41%) and robust interest coverage (5.41), concerns arise from negative net margin (-11.89%) and return on equity (-12.87%). The company does not pay dividends, likely prioritizing reinvestment or growth, as its dividend yield is zero.
Teradata Corporation
Teradata shows a balanced ratio evaluation with 42.86% favorable and 42.86% unfavorable metrics. It benefits from excellent return on equity (85.71%) and solid asset turnover (1.03), yet struggles with weak liquidity ratios (current ratio 0.81) and high debt-to-equity (4.33). Similar to StoneCo, Teradata does not distribute dividends, possibly focusing on R&D and acquisitions.
Which one has the best ratios?
StoneCo’s slightly favorable overall rating contrasts with Teradata’s neutral evaluation. StoneCo’s stronger capital returns and manageable debt levels offset its poor profitability, while Teradata’s excellent equity returns are tempered by liquidity and leverage weaknesses. Both firms have no dividend payouts, reflecting distinct strategic priorities.
Strategic Positioning
This section compares the strategic positioning of StoneCo Ltd. and Teradata Corporation, including Market position, Key segments, and disruption:
StoneCo Ltd.
- Focused on Brazilian market with high competitive pressure in fintech payments.
- Serves ~1.8M clients, mainly small-medium businesses, e-commerce platforms, and marketplaces.
- Operates in financial technology with limited exposure to rapid technological shifts.
Teradata Corporation
- Global presence with moderate competitive pressure in enterprise data analytics.
- Diverse revenue streams including recurring consulting and subscription software services.
- Positioned on connected multi-cloud data platforms, exposed to cloud migration trends.
StoneCo Ltd. vs Teradata Corporation Positioning
StoneCo adopts a concentrated approach targeting Brazilian SMBs and digital commerce, while Teradata pursues diversified global data analytics and consulting services. StoneCo’s local focus contrasts with Teradata’s multi-industry, multi-cloud strategy, reflecting distinct business drivers and market scopes.
Which has the best competitive advantage?
Both companies show very favorable MOAT statuses with growing ROIC above WACC, indicating durable competitive advantages and efficient capital use. StoneCo’s fintech niche and Teradata’s multi-cloud analytics platform both support sustained value creation.
Stock Comparison
The past year saw distinct price movements for StoneCo Ltd. and Teradata Corporation, with both experiencing bearish trends overall but divergent recent performances that highlight shifting trading dynamics.
Trend Analysis
StoneCo Ltd. has shown a bearish trend over the past 12 months with a -13.9% price change and deceleration in the downward movement, ranging between 7.85 and 19.4, accompanied by moderate volatility (std deviation 2.92).
Teradata Corporation also faced a bearish trend over the same period, with a steeper -21.26% price decline but an accelerating negative trend, showing higher volatility (std deviation 5.63) and price swings between 19.73 and 38.67.
Comparing recent trends from November 2025 to January 2026, Teradata’s stock reversed to a bullish trend with a +42.78% increase, outperforming StoneCo’s further decline of -23.78%, making Teradata the stronger market performer in this timeframe.
Target Prices
The current analyst consensus target prices indicate moderate upside potential for both StoneCo Ltd. and Teradata Corporation.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| StoneCo Ltd. | 20 | 20 | 20 |
| Teradata Corporation | 35 | 27 | 31 |
Analysts expect StoneCo Ltd. to reach $20, which is about 38% above its current price of $14.49. Teradata’s target consensus of $31 suggests a modest upside of roughly 4% from its current $29.77.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for StoneCo Ltd. and Teradata Corporation:
Rating Comparison
StoneCo Ltd. Rating
- Rating: C, considered Very Favorable
- Discounted Cash Flow Score: 3, Moderate
- ROE Score: 1, Very Unfavorable
- ROA Score: 1, Very Unfavorable
- Debt To Equity Score: 1, Very Unfavorable
- Overall Score: 2, Moderate
Teradata Corporation Rating
- Rating: B+, considered Very Favorable
- Discounted Cash Flow Score: 4, Favorable
- ROE Score: 5, Very Favorable
- ROA Score: 4, Favorable
- Debt To Equity Score: 1, Very Unfavorable
- Overall Score: 3, Moderate
Which one is the best rated?
Teradata Corporation holds a higher rating (B+) and superior scores in discounted cash flow, ROE, and ROA compared to StoneCo Ltd., though both share a low debt-to-equity score. Overall, Teradata’s evaluation is more favorable.
Scores Comparison
The comparison of StoneCo Ltd. and Teradata Corporation scores is as follows:
StoneCo Ltd. Scores
- Altman Z-Score: 1.02, indicating financial distress.
- Piotroski Score: 5, reflecting average financial health.
Teradata Corporation Scores
- Altman Z-Score: 0.81, indicating financial distress.
- Piotroski Score: 8, reflecting very strong financial health.
Which company has the best scores?
Teradata has a lower Altman Z-Score than StoneCo, both in distress zones, but Teradata’s Piotroski Score is significantly stronger, indicating better overall financial health based on the provided data.
Grades Comparison
Here is a detailed comparison of the latest grades from reputable firms for StoneCo Ltd. and Teradata Corporation:
StoneCo Ltd. Grades
The following table summarizes recent grades assigned to StoneCo Ltd. by leading financial institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | Maintain | Buy | 2025-10-14 |
| B of A Securities | Maintain | Buy | 2025-09-09 |
| UBS | Maintain | Buy | 2025-08-29 |
| JP Morgan | Maintain | Overweight | 2025-07-16 |
| Barclays | Maintain | Equal Weight | 2025-05-12 |
| Barclays | Maintain | Equal Weight | 2025-04-23 |
| Citigroup | Upgrade | Buy | 2025-04-22 |
| Barclays | Maintain | Equal Weight | 2025-03-21 |
| Morgan Stanley | Maintain | Underweight | 2025-03-21 |
| Goldman Sachs | Maintain | Buy | 2025-02-06 |
StoneCo Ltd. shows mostly sustained Buy and Overweight ratings, with a few Equal Weight and Underweight exceptions, indicating generally positive analyst sentiment.
Teradata Corporation Grades
Below is the recent grading history for Teradata Corporation from well-known financial firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Underweight | 2026-01-12 |
| RBC Capital | Maintain | Sector Perform | 2026-01-05 |
| Morgan Stanley | Maintain | Overweight | 2025-12-17 |
| Citizens | Upgrade | Market Outperform | 2025-11-10 |
| Barclays | Maintain | Underweight | 2025-11-05 |
| TD Cowen | Maintain | Hold | 2025-11-05 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-05 |
| UBS | Maintain | Neutral | 2025-08-06 |
| Guggenheim | Maintain | Buy | 2025-05-07 |
| Barclays | Maintain | Underweight | 2025-04-21 |
Teradata’s grades fluctuate more widely, ranging from Underweight to Outperform, with a recent tendency toward Hold and Underweight ratings.
Which company has the best grades?
StoneCo Ltd. holds a stronger consensus with predominantly Buy and Overweight ratings, reflecting more consistent optimism. Teradata Corporation shows mixed grades with a Hold consensus, suggesting greater caution. These differences may influence investor sentiment by affecting perceived risk and growth potential.
Strengths and Weaknesses
Below is a comparative overview of the key strengths and weaknesses of StoneCo Ltd. (STNE) and Teradata Corporation (TDC) based on recent financial and operational data.
| Criterion | StoneCo Ltd. (STNE) | Teradata Corporation (TDC) |
|---|---|---|
| Diversification | Limited product diversification focused on digital payments; moderate global presence in Latin America | Strong diversification in data analytics, consulting, recurring services, and software licenses; global presence with significant international business |
| Profitability | Negative net margin (-11.89%) and ROE (-12.87%) indicate current profitability challenges despite favorable ROIC (22.41%) | Positive net margin (6.51%), very high ROE (85.71%), and favorable ROIC (16.89%) showcase strong profitability |
| Innovation | Moderate innovation with strong fixed asset turnover (6.95) but lower asset turnover overall (0.23) | High innovation reflected in strong asset turnover (1.03) and fixed asset turnover (9.07) |
| Global presence | Primarily focused on Brazil and Latin America, with limited expansion | Established global presence with diversified revenue streams across multiple regions and service lines |
| Market Share | Competitive in regional digital payments but faces intense competition; moderate debt levels (D/E 1.1) | Strong presence in data analytics market with stable debt profile (D/E 4.33) but less favorable liquidity ratios |
Key takeaways: StoneCo demonstrates strong capital efficiency but struggles with profitability and diversification. Teradata shows robust profitability and innovation with a well-diversified revenue base but faces liquidity constraints. Investors should weigh StoneCo’s growth potential against its current losses and Teradata’s stable income against its higher leverage.
Risk Analysis
Below is a comparison of key risks for StoneCo Ltd. (STNE) and Teradata Corporation (TDC) based on the most recent 2024 data:
| Metric | StoneCo Ltd. (STNE) | Teradata Corporation (TDC) |
|---|---|---|
| Market Risk | High beta (1.835) indicating higher volatility | Low beta (0.57) indicating lower volatility |
| Debt level | Moderate debt/equity ratio (1.1) with favorable debt-to-assets (23.53%) | High debt/equity ratio (4.33) and neutral debt-to-assets (33.8%) |
| Regulatory Risk | Moderate, operating mainly in Brazil with financial tech regulations | Moderate, exposed to multiple global markets with data/privacy regulations |
| Operational Risk | Moderate, reliant on Brazil’s SMB market and proprietary platforms | Moderate, dependent on cloud infrastructure and enterprise adoption |
| Environmental Risk | Low to moderate, fintech sector with limited direct impact | Low, software sector with minimal environmental footprint |
| Geopolitical Risk | Elevated due to operations in Brazil and Cayman Islands | Moderate, US-based with global client exposure |
In synthesis, StoneCo faces significant market volatility and financial distress risk, reflected in its distressed Altman Z-score and unfavorable return metrics, despite moderate debt levels. Teradata shows strong financial health but carries high debt risk and market uncertainty. The most impactful risks are StoneCo’s financial distress potential and Teradata’s leverage, both requiring cautious risk management for investors.
Which Stock to Choose?
StoneCo Ltd. (STNE) shows a favorable income evolution with 12.1% revenue growth in 2024 and a 302% increase over five years, despite negative net margins and profitability ratios. Its financial ratios are slightly favorable, with strong ROIC at 22.4% but weak ROE and net margin. Debt ratios are mixed, and it holds a very favorable overall rating.
Teradata Corporation (TDC) presents a stable income statement with positive net margin of 6.51% and favorable EBIT margin. Revenue declined slightly by 4.5% in 2024 and over the period. Financial ratios are neutral overall, supported by high ROE of 85.7% but challenged by elevated debt levels. Its rating is very favorable but with some unfavorable valuation metrics.
For investors prioritizing durable competitive advantage and value creation, both companies demonstrate very favorable economic moats with growing ROIC exceeding WACC. Growth-focused investors might find StoneCo’s robust revenue expansion and improving operating returns appealing, while those valuing profitability and strong equity returns could see Teradata as a more stable choice. Risk-averse profiles could weigh Teradata’s consistent profitability against StoneCo’s mixed margins and leverage.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of StoneCo Ltd. and Teradata Corporation to enhance your investment decisions:
