Carlsmed, Inc. (CARL) vs Simulations Plus, Inc. (SLP)

Carlsmed, Inc. and Simulations Plus, Inc. are both Health Information Services companies. Carlsmed, Inc. and Simulations Plus, Inc. are of similar size ($404.6M and $373.4M). Carlsmed, Inc. has negative trailing earnings, so its P/E is not meaningful; Simulations Plus, Inc. trades at 46.2×. Carlsmed, Inc. grew revenue faster over the last twelve months: 81.1% against 2.08%. Simulations Plus, Inc. has the higher net margin (9.88% vs −57.4%) and the higher return on invested capital (8.07% vs −234.5%). Across the 17 metrics below, Simulations Plus, Inc. leads on 13 and Carlsmed, Inc. on 4.

Valuation

Metric CARL SLP Health Information Services median
P/E n/m 46.18 39.52
P/S 6.49 4.55 2.65
P/B 4.87 2.68 2.32
Price to free cash flow n/m 16.99 16.77
EV/EBITDA n/m 18.88 12.35
EV/Sales 5.32 3.94 3.06
Earnings yield (9.47%) 2.17% (1.68%)
Free cash flow yield (8.69%) 5.89% 0.54%

Profitability

Metric CARL SLP Health Information Services median
Gross margin 76.63% 63.38% 63.38%
Operating margin (61.09%) 14.02% (8.35%)
Net margin (57.42%) 9.88% (14.70%)
Free cash flow margin (56.36%) 26.77% 0.58%
Return on equity (6,196.93%) 6.17% (6.82%)
Return on assets (42.39%) 5.64% (6.02%)
Return on invested capital (234.53%) 8.07% 0.00%

Growth

Metric CARL SLP Health Information Services median
Revenue growth (TTM) 81.14% 2.08% 8.62%
EPS growth (last fiscal year) 65.30% (757.14%) —
Revenue growth, 5-year CAGR — 13.74% 12.36%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric CARL SLP Health Information Services median
Debt to equity 0.18 0.00 0.01
Current ratio 8.84 5.54 2.37
Net debt to EBITDA 3.12 0.52 0.50

Dividend

Metric CARL SLP Health Information Services median
Dividend yield — 0.59% 0.85%
Payout ratio — 0.48 0.00

Size

Metric CARL SLP Health Information Services median
Market cap 404.63m 373.35m 352.86m

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