A10 Networks, Inc. (ATEN) vs Bandwidth Inc. (BAND)

A10 Networks, Inc. and Bandwidth Inc. are both Software Infrastructure companies. A10 Networks, Inc. and Bandwidth Inc. are of similar size ($2.0B and $1.9B). A10 Networks, Inc. trades at the lower P/E: 42.9× against 1,022×. A10 Networks, Inc. grew revenue faster over the last twelve months: 12.2% against 9.25%. A10 Networks, Inc. has the higher net margin (13.9% vs 0.27%) and the higher return on invested capital (31.3% vs −1.77%). Across the 22 metrics below, A10 Networks, Inc. leads on 14 and Bandwidth Inc. on 8.

Valuation

Metric ATEN BAND Software Infrastructure median
P/E 42.88 1,022.33 28.02
P/S 5.99 2.38 3.07
P/B 7.80 4.96 3.36
Price to free cash flow 30.47 29.25 17.12
EV/EBITDA 29.24 41.35 14.91
EV/Sales 6.25 2.63 3.03
Earnings yield 2.33% 0.10% 0.13%
Free cash flow yield 3.28% 3.42% 1.15%

Profitability

Metric ATEN BAND Software Infrastructure median
Gross margin 79.38% 37.23% 61.23%
Operating margin 16.14% (1.82%) 0.00%
Net margin 13.85% 0.27% 0.00%
Free cash flow margin 19.65% 8.13% 1.67%
Return on equity 19.45% 0.58% 0.59%
Return on assets 6.68% 0.21% 0.00%
Return on invested capital 31.25% (1.77%) 0.00%

Growth

Metric ATEN BAND Software Infrastructure median
Revenue growth (TTM) 12.20% 9.25% 13.41%
EPS growth (last fiscal year) (14.93%) (79.17%) —
Revenue growth, 5-year CAGR 5.20% 17.05% 15.81%
Net income growth, 5-year CAGR 18.79% 0.00% 0.00%

Health

Metric ATEN BAND Software Infrastructure median
Debt to equity 0.92 0.87 0.06
Current ratio 1.29 2.04 1.55
Net debt to EBITDA (2.57) 3.09 0.08

Dividend

Metric ATEN BAND Software Infrastructure median
Dividend yield 1.90% — 1.53%
Payout ratio 0.38 0.00 0.00

Size

Metric ATEN BAND Software Infrastructure median
Market cap 1.89b 1.99b 835.96m

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