Backblaze, Inc. (BLZE) vs Rapid7, Inc. (RPD)

Backblaze, Inc. and Rapid7, Inc. are both Software Infrastructure companies. Backblaze, Inc. and Rapid7, Inc. are of similar size ($866.1M and $836.0M). Backblaze, Inc. has negative trailing earnings, so its P/E is not meaningful; Rapid7, Inc. trades at 37.5×. Backblaze, Inc. grew revenue faster over the last twelve months: 13.9% against 0.07%. Rapid7, Inc. has the higher net margin (2.35% vs −13.1%) and the higher return on invested capital (0.00% vs −16.5%). Across the 20 metrics below, Rapid7, Inc. leads on 14 and Backblaze, Inc. on 6.

Valuation

Metric BLZE RPD Software Infrastructure median
P/E n/m 37.48 28.02
P/S 5.13 0.91 3.07
P/B 9.06 3.96 3.36
Price to free cash flow 76.92 6.06 17.12
EV/EBITDA 98.88 6.43 14.91
EV/Sales 5.04 0.45 3.03
Earnings yield (2.58%) 2.67% 0.13%
Free cash flow yield 1.30% 16.50% 1.15%

Profitability

Metric BLZE RPD Software Infrastructure median
Gross margin 61.97% 69.30% 61.23%
Operating margin (11.61%) 1.24% 0.00%
Net margin (13.07%) 2.35% 0.00%
Free cash flow margin 9.98% 15.01% 1.67%
Return on equity (24.29%) 14.03% 0.59%
Return on assets (9.97%) 1.19% 0.00%
Return on invested capital (16.49%) 0.00% 0.00%

Growth

Metric BLZE RPD Software Infrastructure median
Revenue growth (TTM) 13.85% 0.07% 13.41%
EPS growth (last fiscal year) 58.56% (10.00%) —
Revenue growth, 5-year CAGR 22.08% 15.88% 15.81%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BLZE RPD Software Infrastructure median
Debt to equity 0.34 1.50 0.06
Current ratio 1.00 0.80 1.55
Net debt to EBITDA (15.29) 6.82 0.08

Dividend

Metric BLZE RPD Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric BLZE RPD Software Infrastructure median
Market cap 835.96m 866.10m 835.96m

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