Bandwidth Inc. (BAND) vs ForgeRock, Inc. (FORG)

Bandwidth Inc. and ForgeRock, Inc. are both Software Infrastructure companies. Bandwidth Inc. and ForgeRock, Inc. are of similar size ($2.0B and $2.0B). ForgeRock, Inc. has negative trailing earnings, so its P/E is not meaningful; Bandwidth Inc. trades at 1,022×. ForgeRock, Inc. grew revenue faster over the last twelve months: 29.4% against 9.25%. Bandwidth Inc. has the higher net margin (0.27% vs −33.6%) and the higher return on invested capital (−1.77% vs −761.8%). Across the 17 metrics below, Bandwidth Inc. leads on 12 and ForgeRock, Inc. on 5.

Valuation

Metric BAND FORG Software Infrastructure median
P/E 1,022.33 n/m 28.02
P/S 2.38 8.47 3.07
P/B 4.96 7.13 3.36
Price to free cash flow 29.25 n/m 17.12
EV/EBITDA 41.35 n/m 14.91
EV/Sales 2.63 7.31 3.03
Earnings yield 0.10% (4.01%) 0.13%
Free cash flow yield 3.42% (1.96%) 1.15%

Profitability

Metric BAND FORG Software Infrastructure median
Gross margin 37.23% 80.91% 61.23%
Operating margin (1.82%) (34.48%) 0.00%
Net margin 0.27% (33.58%) 0.00%
Free cash flow margin 8.13% (16.63%) 1.67%
Return on equity 0.58% (27.00%) 0.59%
Return on assets 0.21% (17.76%) 0.00%
Return on invested capital (1.77%) (761.80%) 0.00%

Growth

Metric BAND FORG Software Infrastructure median
Revenue growth (TTM) 9.25% 29.41% 13.41%
EPS growth (last fiscal year) (79.17%) 31.58% —
Revenue growth, 5-year CAGR 17.05% — 15.81%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric BAND FORG Software Infrastructure median
Debt to equity 0.87 0.14 0.06
Current ratio 2.04 3.61 1.55
Net debt to EBITDA 3.09 6.00 0.08

Dividend

Metric BAND FORG Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric BAND FORG Software Infrastructure median
Market cap 1.99b 1.95b 835.96m

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