A10 Networks, Inc. (ATEN) vs GigaCloud Technology Inc. (GCT)

A10 Networks, Inc. and GigaCloud Technology Inc. are both Software Infrastructure companies. A10 Networks, Inc. and GigaCloud Technology Inc. are of similar size ($1.9B and $1.9B). GigaCloud Technology Inc. trades at the lower P/E: 12.7× against 42.9×. GigaCloud Technology Inc. grew revenue faster over the last twelve months: 22.9% against 12.2%. A10 Networks, Inc. has the higher net margin (13.9% vs 10.7%) and the lower return on invested capital (31.3% vs 68.3%). Across the 22 metrics below, GigaCloud Technology Inc. leads on 18 and A10 Networks, Inc. on 4.

Valuation

Metric ATEN GCT Software Infrastructure median
P/E 42.88 12.75 28.02
P/S 5.99 1.34 3.07
P/B 7.80 3.69 3.36
Price to free cash flow 30.47 12.48 17.12
EV/EBITDA 29.24 8.88 14.91
EV/Sales 6.25 1.09 3.03
Earnings yield 2.33% 7.84% 0.13%
Free cash flow yield 3.28% 8.01% 1.15%

Profitability

Metric ATEN GCT Software Infrastructure median
Gross margin 79.38% 23.96% 61.23%
Operating margin 16.14% 11.65% 0.00%
Net margin 13.85% 10.65% 0.00%
Free cash flow margin 19.65% 10.76% 1.67%
Return on equity 19.45% 32.34% 0.59%
Return on assets 6.68% 13.25% 0.00%
Return on invested capital 31.25% 68.33% 0.00%

Growth

Metric ATEN GCT Software Infrastructure median
Revenue growth (TTM) 12.20% 22.86% 13.41%
EPS growth (last fiscal year) (14.93%) 17.70% —
Revenue growth, 5-year CAGR 5.20% 36.17% 15.81%
Net income growth, 5-year CAGR 18.79% 60.35% 0.00%

Health

Metric ATEN GCT Software Infrastructure median
Debt to equity 0.92 0.00 0.06
Current ratio 1.29 2.09 1.55
Net debt to EBITDA (2.57) (2.71) 0.08

Dividend

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

Size

Metric ATEN GCT Software Infrastructure median
Market cap 1.89b 1.89b 835.96m

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