Appian Corporation (APPN) vs NetScout Systems, Inc. (NTCT)

Appian Corporation and NetScout Systems, Inc. are both Software Infrastructure companies. Appian Corporation and NetScout Systems, Inc. are of similar size ($2.9B and $2.7B). Appian Corporation has negative trailing earnings, so its P/E is not meaningful; NetScout Systems, Inc. trades at 23.6×. Appian Corporation grew revenue faster over the last twelve months: 20.9% against 5.79%. NetScout Systems, Inc. has the higher net margin (13.7% vs −1.34%) and the higher return on invested capital (7.91% vs 0.00%). Across the 20 metrics below, NetScout Systems, Inc. leads on 16 and Appian Corporation on 4.

Valuation

Metric APPN NTCT Software Infrastructure median
P/E n/m 23.62 28.02
P/S 3.30 3.21 3.07
P/B n/m 1.70 3.36
Price to free cash flow 34.20 11.03 17.12
EV/EBITDA 132.94 12.54 14.91
EV/Sales 3.39 2.66 3.03
Earnings yield (0.39%) 4.23% 0.13%
Free cash flow yield 2.92% 9.07% 1.15%

Profitability

Metric APPN NTCT Software Infrastructure median
Gross margin 72.40% 79.84% 61.23%
Operating margin 1.28% 14.82% 0.00%
Net margin (1.34%) 13.71% 0.00%
Free cash flow margin 9.65% 29.22% 1.67%
Return on equity 13.37% 7.54% 0.59%
Return on assets (1.81%) 5.42% 0.00%
Return on invested capital 0.00% 7.91% 0.00%

Growth

Metric APPN NTCT Software Infrastructure median
Revenue growth (TTM) 20.90% 5.79% 13.41%
EPS growth (last fiscal year) 101.59% 125.39% —
Revenue growth, 5-year CAGR 19.00% 0.67% 15.81%
Net income growth, 5-year CAGR 0.00% 37.62% 0.00%

Health

Metric APPN NTCT Software Infrastructure median
Debt to equity (2.24) 0.00 0.06
Current ratio 1.00 1.83 1.55
Net debt to EBITDA 4.91 (4.02) 0.08

Dividend

Metric APPN NTCT Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric APPN NTCT Software Infrastructure median
Market cap 2.69b 2.85b 835.96m

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