AppLovin Corporation (APP) vs Stagwell Inc. (STGW)

AppLovin Corporation and Stagwell Inc. are both Advertising Agencies companies. AppLovin Corporation is the larger, with a market value of $90.9B against $2.7B — 33.8× the size. AppLovin Corporation trades at the lower P/E: 27.3× against 271×. AppLovin Corporation grew revenue faster over the last twelve months: 76.3% against 7.74%. AppLovin Corporation has the higher net margin (64.6% vs 0.31%) and the higher return on invested capital (91.2% vs 3.95%). Across the 22 metrics below, AppLovin Corporation leads on 15 and Stagwell Inc. on 7.

Valuation

Metric APP STGW Advertising Agencies median
P/E 27.27 271.00 21.69
P/S 17.53 0.85 0.73
P/B 37.84 3.73 1.02
Price to free cash flow 26.97 9.83 8.36
EV/EBITDA 22.20 12.33 11.66
EV/Sales 17.62 1.33 0.96
Earnings yield 3.67% 0.37% (2.98%)
Free cash flow yield 3.71% 10.17% 0.00%

Profitability

Metric APP STGW Advertising Agencies median
Gross margin 88.46% 36.03% 44.67%
Operating margin 77.44% 4.04% 0.00%
Net margin 64.58% 0.31% (2.95%)
Free cash flow margin 66.30% 8.66% 0.00%
Return on equity 203.69% 1.31% 0.00%
Return on assets 61.99% 0.23% 0.00%
Return on invested capital 91.19% 3.95% 0.00%

Growth

Metric APP STGW Advertising Agencies median
Revenue growth (TTM) 76.34% 7.74% 2.99%
EPS growth (last fiscal year) 115.23% 479.00% 44.63%
Revenue growth, 5-year CAGR 30.45% 26.78% 5.40%
Net income growth, 5-year CAGR 0.00% (12.38%) 0.00%

Health

Metric APP STGW Advertising Agencies median
Debt to equity 1.11 1.99 0.04
Current ratio 4.30 0.81 1.72
Net debt to EBITDA 0.23 3.78 0.02

Dividend

Metric APP STGW Advertising Agencies median
Dividend yield — — 3.66%
Payout ratio — — —

Size

Metric APP STGW Advertising Agencies median
Market cap 90.90b 2.69b 60.75m

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