Cheer (NASDAQ:CHR) and StoneCo (NASDAQ:STNE) Head-To-Head Survey

Cheer (NASDAQ:CHR) and StoneCo (NASDAQ:STNE) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for Cheer and StoneCo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheer	0	0	0	0	N/A
StoneCo	1	1	8	0	2.70

StoneCo has a consensus target price of $17.80, suggesting a potential upside of 45.42%. Given StoneCo’s higher probable upside, analysts clearly believe StoneCo is more favorable than Cheer.

Volatility & Risk

Cheer has a beta of -0.34, suggesting that its share price is 134% less volatile than the S&P 500. Comparatively, StoneCo has a beta of 2.31, suggesting that its share price is 131% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheer	$152.33 million	0.16	$30.48 million	N/A	N/A
StoneCo	$12.09 billion	0.32	$318.89 million	$1.11	11.03

StoneCo has higher revenue and earnings than Cheer.

Institutional and Insider Ownership

18.5% of Cheer shares are owned by institutional investors. Comparatively, 73.2% of StoneCo shares are owned by institutional investors. 41.7% of Cheer shares are owned by insiders. Comparatively, 11.3% of StoneCo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Cheer and StoneCo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cheer	N/A	N/A	N/A
StoneCo	15.27%	13.21%	3.97%

Summary

StoneCo beats Cheer on 10 of the 11 factors compared between the two stocks.

About Cheer

Cheer Holding, Inc., through its subsidiaries, provides advertisement and content production services in the People's Republic of China. It operates through Cheers APP Internet Business and Traditional Media Businesses segments. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an integrated e-commerce service with professionally produced content; CHEERS Video app, a media platform that engages users with content; and CHEERS e-Mall, an e-Mall app that offers products to the users through third party merchants through live streaming, online short videos, and online games. The company also provides CHEERS Telepathy, an artificial intelligence content creation platform; CHEERS Open Data, a platform that provides industry solutions; CheerCar, an interactive entertainment app; CheerReal, a digital collection NFT app; and production, such as short videos, online variety shows, online drama, live stream, and Cheers series. In addition, it is developing CheerChat App, a social app; and CHEERS Metaverse, a platform to provide immersive digital experiences. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. Cheer Holding, Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.

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.