Asana, Inc. (ASAN) vs SPS Commerce, Inc. (SPSC)

Asana, Inc. and SPS Commerce, Inc. are both Software Application companies. SPS Commerce, Inc. is the larger, with a market value of $3.0B against $2.7B — 1.1× the size. Asana, Inc. has negative trailing earnings, so its P/E is not meaningful; SPS Commerce, Inc. trades at 36.4×. Asana, Inc. grew revenue faster over the last twelve months: 9.48% against 6.92%. SPS Commerce, Inc. has the higher net margin (10.7% vs −18.6%) and the higher return on invested capital (8.97% vs 0.00%). Across the 19 metrics below, SPS Commerce, Inc. leads on 10 and Asana, Inc. on 9.

Valuation

Metric ASAN SPSC Software Application median
P/E n/m 36.41 25.90
P/S 3.11 3.79 3.04
P/B 24.69 3.17 2.60
Price to free cash flow 10.49 14.61 17.17
EV/EBITDA n/m 16.41 15.48
EV/Sales 2.74 3.56 2.89
Earnings yield (5.91%) 2.75% 0.00%
Free cash flow yield 9.53% 6.85% 1.98%

Profitability

Metric ASAN SPSC Software Application median
Gross margin 87.56% 70.23% 66.89%
Operating margin (19.37%) 13.79% 0.00%
Net margin (18.63%) 10.65% 0.00%
Free cash flow margin 29.65% 25.97% 5.77%
Return on equity (105.40%) 8.79% 0.00%
Return on assets (18.62%) 7.26% 0.00%
Return on invested capital 0.00% 8.97% 0.00%

Growth

Metric ASAN SPSC Software Application median
Revenue growth (TTM) 9.48% 6.92% 12.27%
EPS growth (last fiscal year) 27.93% 20.59% 32.11%
Revenue growth, 5-year CAGR 28.35% 19.17% 14.34%
Net income growth, 5-year CAGR 0.00% 15.41% 0.00%

Health

Metric ASAN SPSC Software Application median
Debt to equity 0.00 0.00 0.02
Current ratio 0.92 2.25 1.53
Net debt to EBITDA 2.95 (0.86) 0.09

Dividend

Metric ASAN SPSC Software Application median
Dividend yield — — 1.10%
Payout ratio — — 0.28

Size

Metric ASAN SPSC Software Application median
Market cap 2.67b 3.02b 487.58m

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