BlackLine (BL) vs Karooooo Ltd. (KARO)

BlackLine and Karooooo Ltd. are both Software Application companies. Karooooo Ltd. is the larger, with a market value of $1.9B against $1.6B — 1.2× the size. Karooooo Ltd. trades at the lower P/E: 31.3× against 71.1×. Karooooo Ltd. grew revenue faster over the last twelve months: 29.6% against 8.62%. Karooooo Ltd. has the higher net margin (17.8% vs 4.75%) and the higher return on invested capital (29.3% vs 4.32%). Across the 21 metrics below, Karooooo Ltd. leads on 13 and BlackLine on 8.

Valuation

Metric BL KARO Software Application median
P/E 71.08 31.28 24.79
P/S 2.24 5.62 2.67
P/B 5.18 8.70 3.01
Price to free cash flow 10.99 n/m 16.59
EV/EBITDA 21.31 21.59 14.40
EV/Sales 2.44 5.52 2.62
Earnings yield 1.41% 3.20% 0.00%
Free cash flow yield 9.10% (4.35%) 1.91%

Profitability

Metric BL KARO Software Application median
Gross margin 75.56% 67.99% 67.03%
Operating margin 4.32% 25.57% 0.00%
Net margin 4.75% 17.81% 0.00%
Free cash flow margin 20.36% 32.53% 4.32%
Return on equity 9.53% 29.51% 0.00%
Return on assets 2.13% 18.02% 0.00%
Return on invested capital 4.32% 29.32% 0.00%

Growth

Metric BL KARO Software Application median
Revenue growth (TTM) 8.62% 29.64% 12.40%
EPS growth (last fiscal year) (82.91%) 12.88% —
Revenue growth, 5-year CAGR 14.77% 17.58% 13.72%
Net income growth, 5-year CAGR 0.00% 24.02% 0.00%

Health

Metric BL KARO Software Application median
Debt to equity 2.12 0.15 0.02
Current ratio 1.72 1.02 1.55
Net debt to EBITDA (1.49) (0.26) 0.06

Dividend

Metric BL KARO Software Application median
Dividend yield — 0.98% 1.25%
Payout ratio 0.00 0.52 0.00

Size

Metric BL KARO Software Application median
Market cap 1.62b 1.92b 396.11m

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