Adeia Inc. (ADEA) vs Karooooo Ltd. (KARO)

Adeia Inc. and Karooooo Ltd. are both Software Application companies. Karooooo Ltd. is the larger, with a market value of $2.0B against $1.6B — 1.2× the size. Adeia Inc. trades at the lower P/E: 13.8× against 30.1×. Karooooo Ltd. grew revenue faster over the last twelve months: 31.7% against 22.1%. Adeia Inc. has the higher net margin (25.0% vs 17.7%) and the lower return on invested capital (15.1% vs 31.5%). Both pay a dividend; Karooooo Ltd. yields more (2.38% vs 1.35%). Across the 22 metrics below, Adeia Inc. leads on 12 and Karooooo Ltd. on 10.

Valuation

Metric ADEA KARO Software Application median
P/E 13.84 30.14 25.90
P/S 3.53 5.35 3.04
P/B 3.39 10.20 2.60
Price to free cash flow 10.24 n/m 17.17
EV/EBITDA 7.21 20.97 15.48
EV/Sales 4.07 5.33 2.89
Earnings yield 7.22% 3.32% 0.00%
Free cash flow yield 9.77% (3.30%) 1.98%

Profitability

Metric ADEA KARO Software Application median
Gross margin 100.00% 67.34% 66.89%
Operating margin 38.39% 25.43% 0.00%
Net margin 25.04% 17.65% 0.00%
Free cash flow margin 34.44% 35.39% 5.77%
Return on equity 25.90% 35.47% 0.00%
Return on assets 11.19% 19.44% 0.00%
Return on invested capital 15.12% 31.48% 0.00%

Growth

Metric ADEA KARO Software Application median
Revenue growth (TTM) 22.06% 31.71% 12.27%
EPS growth (last fiscal year) 73.68% 12.88% 32.11%
Revenue growth, 5-year CAGR (2.98%) 17.58% 14.34%
Net income growth, 5-year CAGR (5.42%) 24.02% 0.00%

Health

Metric ADEA KARO Software Application median
Debt to equity 0.79 0.17 0.02
Current ratio 3.64 0.64 1.53
Net debt to EBITDA 1.19 (0.26) 0.09

Dividend

Metric ADEA KARO Software Application median
Dividend yield 1.35% 2.38% 1.10%
Payout ratio 0.20 0.72 0.28

Size

Metric ADEA KARO Software Application median
Market cap 1.63b 1.95b 487.58m

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