PAGS vs STNE: How PagSeguro Digital and StoneCo Ltd Compare (2026)
Last updated August 2026
Short answer
PAGS (PagSeguro Digital) and STNE (StoneCo Ltd) share investment themes but are different businesses. The right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme.
PAGS vs STNE: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | PAGS | STNE | What it tells you |
|---|---|---|---|
| Market cap | $2.55B | $2.77B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 4.88 | 4.75 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 6.44 | 4.21 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.28 | 1.60 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 22% of range | 18% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 0.90 | 1.15 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Before you buy: how PAGS and STNE affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. PAGS and STNE share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined PAGS and STNE exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does PagSeguro Digital (PAGS) do?
PagSeguro Digital operates in Brazil under the PagBank brand. The original business was merchant acquiring: selling Moderninha and Minizinha card terminals to micro-merchants, individual entrepreneurs and small companies that the incumbent banks would not underwrite, then earning a spread on the transactions and on prepaying receivables. That is still the volume engine, with total payment volume around ~R$128 billion in the first quarter of 2026. The faster-growing half is banking. PagBank issues accounts, cards, payroll loans, secured credit and investment products to both merchants and consumers, and it funds itself mostly from its own customers: total deposits reached ~R$42 billion in the first quarter of 2026, up ~23% year over year, with roughly 91% sourced on-platform. Banking revenue grew ~41% year over year in that quarter while payments revenue was close to flat, which is the clearest statement of where the company is heading.
What does StoneCo Ltd (STNE) do?
StoneCo Ltd. is a leading financial-technology and software company serving small and medium-sized businesses in Brazil. Its core business is payment processing, giving merchants the tools to accept credit and debit cards and other digital payments, but it has expanded into a broader financial-services platform that includes banking, deposits, and a growing credit portfolio, plus software for retailers. It lists in the US on Nasdaq, and Warren Buffett's Berkshire Hathaway was an early high-profile investor.
PAGS vs STNE: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- PAGS drivers: Deposits and banking revenue outgrowing payments; Credit as the third growth leg.
- STNE drivers: Digitization of Brazilian payments; Expanding credit and banking platform.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Competition is the central risk and it comes from four directions at once: Mercado Pago, Nubank, StoneCo and the incumbent Brazilian banks (Itau, Bradesco, Santander Brasil, Banco do Brasil), all chasing the same merchants and deposits. For STNE, the biggest risks are macroeconomic and specific to Brazil.
PAGS or STNE: which should you pick?
PAGS vs STNE: the full fundamentals
PAGS. Reporting currency is the Brazilian real, so headline growth in reais and the dollar return on the NYSE line can diverge sharply. First-quarter 2026 net revenue was ~R$5.0 billion, up ~6.3% year over year, with net income of ~R$546 million and non-GAAP EPS up about ~12%, helped by the shrinking share count. The ~6x multiple is not a screening artifact: it reflects a market that expects fee compression from Pix and treats the credit book as unproven, and Q2 2026 results due August 13, 2026 are the next test of the easing-Selic thesis.
STNE. Figures are approximate and tied to the asOf date; verify live numbers before acting. StoneCo's valuation reflects a growth-fintech that has been improving profitability, but it carries an emerging-markets discount and swings with Brazilian interest rates and the real. A strong-looking growth rate can be flattered or hurt by currency and by how fast the credit book is expanding, so look beyond headline numbers to underwriting quality and take rates.
Headline figures (approximate, August 2026): PAGS shows revenue (ttm, total revenue and income) ~R$20 billion (~$3.7 billion), net income (ttm) ~R$2.2 billion (~$400 million), market capitalization ~$3 billion, p/e (trailing) ~6x; STNE shows business model Payment processing, banking, deposits, and merchant credit for Brazilian small and medium businesses; US-listed on Nasdaq, growth drivers Rapidly expanding credit portfolio (up well over 100% year over year) and rising banking deposits, recent corporate action Completed the sale of Linx in early 2026 and paid an extraordinary dividend, sharpening focus on core financial services, analyst view Bank of America upgraded to Buy, citing Brazilian digital-payments market-share gains.
The bottom line: PAGS vs STNE
PAGS and STNE are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined PAGS and STNE exposure against your real portfolio. It is not an investment adviser.
Wondering how PAGS or STNE fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in PagSeguro Digital with AI
Connect the broker you already use and ask Walnut's AI how PAGS fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between PAGS and STNE?
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PagSeguro Digital operates in Brazil under the PagBank brand. StoneCo Ltd. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is PAGS or STNE the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, PAGS or STNE?
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On forward P/E (as of August 2026), PAGS trades at 4.88x and STNE at 4.75x, so STNE is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both PAGS and STNE?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of PAGS vs STNE?
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PAGS: Competition is the central risk and it comes from four directions at once: Mercado Pago, Nubank, StoneCo and the incumbent Brazilian banks (Itau, Bradesco, Santander Brasil, Banco do Brasil), all chasing the same merchants and deposits. Pix is quietly commoditizing card acceptance fees, so the acquiring take rate faces structural rather than temporary compression. Credit is the newest and least seasoned part of the business, and a Brazilian consumer slowdown would show up as provisions on a ~R$51 billion portfolio that has not been tested at that size. Results are reported in Brazilian reais, so a weaker real reduces reported dollar earnings for a US-based holder even when the underlying business is unchanged. Finally, the share class matters: Class B shares carrying ten votes each keep voting control with the founding UOL and Grupo Folha interests, so Class A holders have limited influence on capital allocation or any change of control. STNE: The biggest risks are macroeconomic and specific to Brazil. High Brazilian interest rates cut both ways: they can raise StoneCo's funding costs and, if they choke the economy, curb merchant activity and credit demand, while also affecting the value of its financial income. Currency risk is significant because StoneCo earns in Brazilian reais while its US-listed shares are priced in dollars, so a weaker real reduces dollar-reported results. Competition is intense, with fintech rivals like Nubank and PagSeguro and the large incumbent Brazilian banks all fighting for merchants and consumers, which pressures pricing and take rates. The rapid credit-portfolio growth adds credit risk: aggressive lending can produce losses if underwriting slips or the economy weakens. Regulatory change in Brazilian payments and banking, including the central bank's Pix instant-payment system, can reshape economics. Finally, as an emerging-markets stock, StoneCo can be volatile and sensitive to global risk sentiment.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell PAGS or STNE; figures are approximate and dated (as of August 2026). Verify current data before investing.