Alight, Inc. (ALIT) vs Ribbon Communications Inc. (RBBN)

Alight, Inc. and Ribbon Communications Inc. are both Software Application companies. Alight, Inc. and Ribbon Communications Inc. are of similar size ($325.5M and $303.9M). Alight, Inc. has negative trailing earnings, so its P/E is not meaningful; Ribbon Communications Inc. trades at 20.0×. Alight, Inc. grew revenue faster over the last twelve months: −3.46% against −7.62%. Ribbon Communications Inc. has the higher net margin (1.96% vs −90.9%) and the higher return on invested capital (−2.94% vs −51.8%). Across the 21 metrics below, Ribbon Communications Inc. leads on 11 and Alight, Inc. on 10.

Valuation

Metric ALIT RBBN Software Application median
P/E n/m 20.00 24.79
P/S 0.13 0.40 2.67
P/B 0.28 0.81 3.01
Price to free cash flow 1.17 46.93 16.59
EV/EBITDA 4.34 19.71 14.40
EV/Sales 0.82 0.76 2.62
Earnings yield (700.36%) 5.00% 0.00%
Free cash flow yield 85.75% 2.13% 1.91%

Profitability

Metric ALIT RBBN Software Application median
Gross margin 32.09% 48.78% 67.03%
Operating margin (95.65%) (3.99%) 0.00%
Net margin (90.90%) 1.96% 0.00%
Free cash flow margin 11.16% 0.85% 4.32%
Return on equity (97.81%) 4.09% 0.00%
Return on assets (36.72%) 1.37% 0.00%
Return on invested capital (51.82%) (2.94%) 0.00%

Growth

Metric ALIT RBBN Software Application median
Revenue growth (TTM) (3.46%) (7.62%) 12.40%
EPS growth (last fiscal year) (1,924.14%) 170.97% —
Revenue growth, 5-year CAGR (3.68%) 0.02% 13.72%
Net income growth, 5-year CAGR 0.00% (14.86%) 0.00%

Health

Metric ALIT RBBN Software Application median
Debt to equity 1.95 0.84 0.02
Current ratio 1.42 1.31 1.55
Net debt to EBITDA 3.35 3.89 0.06

Dividend

Metric ALIT RBBN Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric ALIT RBBN Software Application median
Market cap 303.87m 325.46m 396.11m

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