Applied Digital Corporation (APLD) vs Kyndryl Holdings, Inc. (KD)

Applied Digital Corporation and Kyndryl Holdings, Inc. are both Information Technology Services companies. Applied Digital Corporation is the larger, with a market value of $4.3B against $3.5B — 1.2× the size. Applied Digital Corporation has negative trailing earnings, so its P/E is not meaningful; Kyndryl Holdings, Inc. trades at 46.7×. Applied Digital Corporation grew revenue faster over the last twelve months: 250.6% against −0.74%. Kyndryl Holdings, Inc. has the higher net margin (0.52% vs −53.8%) and the higher return on invested capital (6.82% vs −3.82%). Across the 17 metrics below, Kyndryl Holdings, Inc. leads on 12 and Applied Digital Corporation on 5.

Valuation

Metric APLD KD Information Technology Services median
P/E n/m 46.66 16.12
P/S 5.19 0.24 1.14
P/B 2.81 3.03 1.73
Price to free cash flow n/m 20.98 13.77
EV/EBITDA n/m 1.89 9.89
EV/Sales 8.76 0.40 1.34
Earnings yield (10.57%) 2.14% 3.10%
Free cash flow yield (98.46%) 4.77% 0.06%

Profitability

Metric APLD KD Information Technology Services median
Gross margin 21.56% 22.32% 30.04%
Operating margin (33.14%) 2.61% 1.81%
Net margin (53.75%) 0.52% 0.79%
Free cash flow margin (510.79%) 1.14% 0.00%
Return on equity (35.35%) 6.20% 0.00%
Return on assets (6.65%) 0.68% 0.00%
Return on invested capital (3.82%) 6.82% 0.00%

Growth

Metric APLD KD Information Technology Services median
Revenue growth (TTM) 250.59% (0.74%) 4.85%
EPS growth (last fiscal year) 21.55% (19.05%) 3.57%
Revenue growth, 5-year CAGR — (4.15%) 6.93%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric APLD KD Information Technology Services median
Debt to equity 3.97 3.45 0.31
Current ratio 2.56 0.95 1.69
Net debt to EBITDA (6.23) 0.44 0.55

Dividend

Metric APLD KD Information Technology Services median
Dividend yield — — 1.97%
Payout ratio — — 0.29

Size

Metric APLD KD Information Technology Services median
Market cap 4.28b 3.52b 1.02b

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