Applied Digital Corporation (APLD) vs Gartner, Inc. (IT)

Applied Digital Corporation and Gartner, Inc. are both Information Technology Services companies. Gartner, Inc. is the larger, with a market value of $11.3B against $8.0B — 1.4× the size. Applied Digital Corporation has negative trailing earnings, so its P/E is not meaningful; Gartner, Inc. trades at 16.8×. Applied Digital Corporation grew revenue faster over the last twelve months: 167.5% against 0.68%. Gartner, Inc. has the higher net margin (12.0% vs −40.9%) and the higher return on invested capital (52.7% vs −5.40%). Across the 17 metrics below, Gartner, Inc. leads on 13 and Applied Digital Corporation on 4.

Valuation

Metric APLD IT Information Technology Services median
P/E n/m 16.84 14.63
P/S 11.82 1.93 1.13
P/B 4.19 n/m 2.10
Price to free cash flow n/m 9.69 10.11
EV/EBITDA n/m 9.59 8.56
EV/Sales 13.48 2.16 1.20
Earnings yield (3.39%) 5.94% 4.56%
Free cash flow yield (38.43%) 10.32% 4.37%

Profitability

Metric APLD IT Information Technology Services median
Gross margin 25.79% 69.63% 31.05%
Operating margin (38.68%) 17.25% 3.30%
Net margin (40.94%) 12.00% 2.09%
Free cash flow margin (454.12%) 19.94% 0.00%
Return on equity (22.52%) 113.58% 4.12%
Return on assets (4.24%) 9.99% 0.61%
Return on invested capital (5.40%) 52.67% 0.57%

Growth

Metric APLD IT Information Technology Services median
Revenue growth (TTM) 167.45% 0.68% 7.12%
EPS growth (last fiscal year) 21.55% (39.69%) —
Revenue growth, 5-year CAGR — 9.65% 7.71%
Net income growth, 5-year CAGR 0.00% 22.28% 0.00%

Health

Metric APLD IT Information Technology Services median
Debt to equity 2.89 (17.80) 0.45
Current ratio 4.01 0.88 1.66
Net debt to EBITDA (6.23) 0.91 0.44

Dividend

Metric APLD IT Information Technology Services median
Dividend yield — — 1.21%
Payout ratio 0.00 0.00 0.00

Size

Metric APLD IT Information Technology Services median
Market cap 8.03b 11.32b 1.36b

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