A10 Networks, Inc. (ATEN) vs ForgeRock, Inc. (FORG)

A10 Networks, Inc. and ForgeRock, Inc. are both Software Infrastructure companies. A10 Networks, Inc. and ForgeRock, Inc. are of similar size ($2.0B and $1.9B). ForgeRock, Inc. has negative trailing earnings, so its P/E is not meaningful; A10 Networks, Inc. trades at 42.9×. ForgeRock, Inc. grew revenue faster over the last twelve months: 29.4% against 12.2%. A10 Networks, Inc. has the higher net margin (13.9% vs −33.6%) and the higher return on invested capital (31.3% vs −761.8%). Across the 17 metrics below, A10 Networks, Inc. leads on 11 and ForgeRock, Inc. on 6.

Valuation

Metric ATEN FORG Software Infrastructure median
P/E 42.88 n/m 28.02
P/S 5.99 8.47 3.07
P/B 7.80 7.13 3.36
Price to free cash flow 30.47 n/m 17.12
EV/EBITDA 29.24 n/m 14.91
EV/Sales 6.25 7.31 3.03
Earnings yield 2.33% (4.01%) 0.13%
Free cash flow yield 3.28% (1.96%) 1.15%

Profitability

Metric ATEN FORG Software Infrastructure median
Gross margin 79.38% 80.91% 61.23%
Operating margin 16.14% (34.48%) 0.00%
Net margin 13.85% (33.58%) 0.00%
Free cash flow margin 19.65% (16.63%) 1.67%
Return on equity 19.45% (27.00%) 0.59%
Return on assets 6.68% (17.76%) 0.00%
Return on invested capital 31.25% (761.80%) 0.00%

Growth

Metric ATEN FORG Software Infrastructure median
Revenue growth (TTM) 12.20% 29.41% 13.41%
EPS growth (last fiscal year) (14.93%) 31.58% —
Revenue growth, 5-year CAGR 5.20% — 15.81%
Net income growth, 5-year CAGR 18.79% — 0.00%

Health

Metric ATEN FORG Software Infrastructure median
Debt to equity 0.92 0.14 0.06
Current ratio 1.29 3.61 1.55
Net debt to EBITDA (2.57) 6.00 0.08

Dividend

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

Size

Metric ATEN FORG Software Infrastructure median
Market cap 1.89b 1.95b 835.96m

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