AppFolio, Inc. (APPF) vs Ringcentral, Inc. (RNG)

AppFolio, Inc. and Ringcentral, Inc. are both Software Application companies. AppFolio, Inc. and Ringcentral, Inc. are of similar size ($7.2B and $6.7B). AppFolio, Inc. trades at the lower P/E: 46.3× against 59.0×. AppFolio, Inc. grew revenue faster over the last twelve months: 20.7% against 5.22%. AppFolio, Inc. has the higher net margin (15.1% vs 4.27%) and the higher return on invested capital (37.4% vs 27.2%). Across the 21 metrics below, AppFolio, Inc. leads on 12 and Ringcentral, Inc. on 9.

Valuation

Metric APPF RNG Software Application median
P/E 46.31 59.04 24.79
P/S 6.94 2.48 2.67
P/B 13.74 n/m 3.01
Price to free cash flow 28.92 11.15 16.59
EV/EBITDA 32.43 13.13 14.40
EV/Sales 6.77 2.87 2.62
Earnings yield 2.16% 1.69% 0.00%
Free cash flow yield 3.46% 8.97% 1.91%

Profitability

Metric APPF RNG Software Application median
Gross margin 63.53% 71.83% 67.03%
Operating margin 17.52% 6.72% 0.00%
Net margin 15.13% 4.27% 0.00%
Free cash flow margin 25.51% 22.31% 4.32%
Return on equity 32.09% (20.10%) 0.00%
Return on assets 25.91% 7.38% 0.00%
Return on invested capital 37.43% 27.20% 0.00%

Growth

Metric APPF RNG Software Application median
Revenue growth (TTM) 20.66% 5.22% 12.40%
EPS growth (last fiscal year) (30.09%) 176.19% —
Revenue growth, 5-year CAGR 25.12% 16.27% 13.72%
Net income growth, 5-year CAGR (2.31%) 0.00% 0.00%

Health

Metric APPF RNG Software Application median
Debt to equity 0.00 (1.84) 0.02
Current ratio 3.83 1.11 1.55
Net debt to EBITDA (1.33) 2.19 0.06

Dividend

Metric APPF RNG Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric APPF RNG Software Application median
Market cap 7.24b 6.67b 396.11m

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