Bandwidth Inc. (BAND) vs Marqeta, Inc. (MQ)

Bandwidth Inc. and Marqeta, Inc. are both Software Infrastructure companies. Marqeta, Inc. is the larger, with a market value of $1.9B against $1.2B — 1.6× the size. Marqeta, Inc. trades at the lower P/E: 14.6× against 144×. Marqeta, Inc. grew revenue faster over the last twelve months: 17.3% against 15.1%. Marqeta, Inc. has the higher net margin (18.8% vs 1.01%) and the higher return on invested capital (2.57% vs −1.37%). Across the 21 metrics below, Marqeta, Inc. leads on 12 and Bandwidth Inc. on 9.

Valuation

Metric BAND MQ Software Infrastructure median
P/E 144.48 14.59 24.43
P/S 1.41 2.77 2.81
P/B 3.20 2.29 2.88
Price to free cash flow 14.03 18.00 17.94
EV/EBITDA 23.33 28.75 14.51
EV/Sales 1.62 1.69 2.91
Earnings yield 0.69% 6.85% 0.00%
Free cash flow yield 7.13% 5.56% 0.49%

Profitability

Metric BAND MQ Software Infrastructure median
Gross margin 36.69% 69.78% 57.45%
Operating margin (1.30%) 0.54% 0.00%
Net margin 1.01% 18.76% 0.00%
Free cash flow margin 10.02% 15.40% 0.00%
Return on equity 2.26% 15.45% 0.00%
Return on assets 0.82% 8.66% 0.00%
Return on invested capital (1.37%) 2.57% 0.00%

Growth

Metric BAND MQ Software Infrastructure median
Revenue growth (TTM) 15.11% 17.25% 14.28%
EPS growth (last fiscal year) (79.17%) (160.00%) 18.26%
Revenue growth, 5-year CAGR 17.05% 16.57% 16.15%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BAND MQ Software Infrastructure median
Debt to equity 0.81 0.26 0.02
Current ratio 1.92 1.70 1.53
Net debt to EBITDA 3.09 42.70 0.05

Dividend

Metric BAND MQ Software Infrastructure median
Dividend yield — — 1.06%
Payout ratio — — 0.29

Size

Metric BAND MQ Software Infrastructure median
Market cap 1.22b 1.91b 661.51m

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