Adeia Inc. (ADEA) vs SPS Commerce, Inc. (SPSC)

Adeia Inc. and SPS Commerce, Inc. are both Software Application companies. Adeia Inc. and SPS Commerce, Inc. are of similar size ($3.0B and $2.8B). Adeia Inc. trades at the lower P/E: 22.5× against 39.1×. Adeia Inc. grew revenue faster over the last twelve months: 24.4% against 9.80%. Adeia Inc. has the higher net margin (26.1% vs 10.1%) and the higher return on invested capital (16.9% vs 8.07%). Across the 22 metrics below, Adeia Inc. leads on 13 and SPS Commerce, Inc. on 9.

Valuation

Metric ADEA SPSC Software Application median
P/E 22.55 39.09 24.79
P/S 5.96 3.84 2.67
P/B 5.89 3.16 3.01
Price to free cash flow 16.33 14.95 16.59
EV/EBITDA 11.68 17.51 14.40
EV/Sales 6.49 3.62 2.62
Earnings yield 4.43% 2.56% 0.00%
Free cash flow yield 6.12% 6.69% 1.91%

Profitability

Metric ADEA SPSC Software Application median
Gross margin 100.00% 69.82% 67.03%
Operating margin 41.62% 12.80% 0.00%
Net margin 26.05% 10.10% 0.00%
Free cash flow margin 36.52% 25.72% 4.32%
Return on equity 27.88% 8.26% 0.00%
Return on assets 11.70% 6.94% 0.00%
Return on invested capital 16.87% 8.07% 0.00%

Growth

Metric ADEA SPSC Software Application median
Revenue growth (TTM) 24.35% 9.80% 12.40%
EPS growth (last fiscal year) 73.68% 20.59% —
Revenue growth, 5-year CAGR 2.54% 19.17% 13.72%
Net income growth, 5-year CAGR 0.00% 15.41% 0.00%

Health

Metric ADEA SPSC Software Application median
Debt to equity 0.81 0.00 0.02
Current ratio 3.25 2.26 1.55
Net debt to EBITDA 1.19 (0.86) 0.06

Dividend

Metric ADEA SPSC Software Application median
Dividend yield 1.54% — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric ADEA SPSC Software Application median
Market cap 2.76b 3.00b 396.11m

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