Applied Digital Corporation (APLD) vs Genpact Limited (G)

Applied Digital Corporation and Genpact Limited are both Information Technology Services companies. Applied Digital Corporation is the larger, with a market value of $8.0B against $5.6B — 1.4× the size. Applied Digital Corporation has negative trailing earnings, so its P/E is not meaningful; Genpact Limited trades at 9.7×. Applied Digital Corporation grew revenue faster over the last twelve months: 167.5% against 6.51%. Genpact Limited has the higher net margin (11.1% vs −40.9%) and the higher return on invested capital (14.9% vs −5.40%). Across the 18 metrics below, Genpact Limited leads on 14 and Applied Digital Corporation on 4.

Valuation

Metric APLD G Information Technology Services median
P/E n/m 9.72 14.63
P/S 11.82 1.06 1.13
P/B 4.19 2.14 2.10
Price to free cash flow n/m 10.11 10.11
EV/EBITDA n/m 7.14 8.56
EV/Sales 13.48 1.19 1.20
Earnings yield (3.39%) 10.29% 4.56%
Free cash flow yield (38.43%) 9.89% 4.37%

Profitability

Metric APLD G Information Technology Services median
Gross margin 25.79% 36.46% 31.05%
Operating margin (38.68%) 14.83% 3.30%
Net margin (40.94%) 11.10% 2.09%
Free cash flow margin (454.12%) 10.52% 0.00%
Return on equity (22.52%) 22.45% 4.12%
Return on assets (4.24%) 10.87% 0.61%
Return on invested capital (5.40%) 14.89% 0.57%

Growth

Metric APLD G Information Technology Services median
Revenue growth (TTM) 167.45% 6.51% 7.12%
EPS growth (last fiscal year) 21.55% 9.82% —
Revenue growth, 5-year CAGR — 6.49% 7.71%
Net income growth, 5-year CAGR 0.00% 12.38% 0.00%

Health

Metric APLD G Information Technology Services median
Debt to equity 2.89 0.45 0.45
Current ratio 4.01 2.00 1.66
Net debt to EBITDA (6.23) 0.40 0.44

Dividend

Metric APLD G Information Technology Services median
Dividend yield — 0.92% 1.21%
Payout ratio 0.00 0.24 0.00

Size

Metric APLD G Information Technology Services median
Market cap 8.03b 5.61b 1.36b

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