BlackLine (BL) vs Vertex, Inc. (VERX)

BlackLine and Vertex, Inc. are both Software Application companies. Vertex, Inc. is the larger, with a market value of $1.9B against $1.6B — 1.2× the size. BlackLine trades at the lower P/E: 71.1× against 331×. Vertex, Inc. grew revenue faster over the last twelve months: 10.8% against 8.62%. BlackLine has the higher net margin (4.75% vs 0.45%) and the higher return on invested capital (4.32% vs −2.39%). Across the 21 metrics below, BlackLine leads on 16 and Vertex, Inc. on 5.

Valuation

Metric BL VERX Software Application median
P/E 71.08 330.52 24.79
P/S 2.24 2.33 2.67
P/B 5.18 7.61 3.01
Price to free cash flow 10.99 36.22 16.59
EV/EBITDA 21.31 19.28 14.40
EV/Sales 2.44 2.47 2.62
Earnings yield 1.41% 0.30% 0.00%
Free cash flow yield 9.10% 2.76% 1.91%

Profitability

Metric BL VERX Software Application median
Gross margin 75.56% 63.95% 67.03%
Operating margin 4.32% (1.69%) 0.00%
Net margin 4.75% 0.45% 0.00%
Free cash flow margin 20.36% 6.43% 4.32%
Return on equity 9.53% 1.46% 0.00%
Return on assets 2.13% 0.30% 0.00%
Return on invested capital 4.32% (2.39%) 0.00%

Growth

Metric BL VERX Software Application median
Revenue growth (TTM) 8.62% 10.83% 12.40%
EPS growth (last fiscal year) (82.91%) 111.76% —
Revenue growth, 5-year CAGR 14.77% 14.84% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BL VERX Software Application median
Debt to equity 2.12 1.40 0.02
Current ratio 1.72 0.87 1.55
Net debt to EBITDA (1.49) 0.22 0.06

Dividend

Metric BL VERX Software Application median
Dividend yield — 0.05% 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric BL VERX Software Application median
Market cap 1.62b 1.89b 396.11m

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