Certara, Inc. (CERT) vs Privia Health Group, Inc. (PRVA)

Certara, Inc. and Privia Health Group, Inc. are both Health Information Services companies. Privia Health Group, Inc. is the larger, with a market value of $2.5B against $1.4B — 1.8× the size. Certara, Inc. has negative trailing earnings, so its P/E is not meaningful; Privia Health Group, Inc. trades at 89.6×. Privia Health Group, Inc. grew revenue faster over the last twelve months: 24.1% against 6.89%. Privia Health Group, Inc. has the higher net margin (1.19% vs −16.3%) and the higher return on invested capital (6.59% vs 0.07%). Across the 21 metrics below, Privia Health Group, Inc. leads on 14 and Certara, Inc. on 7.

Valuation

Metric CERT PRVA Health Information Services median
P/E n/m 89.59 39.52
P/S 3.34 1.05 2.65
P/B 1.45 2.97 2.32
Price to free cash flow 25.77 19.00 16.77
EV/EBITDA 19.41 36.52 12.35
EV/Sales 3.60 0.88 3.06
Earnings yield (4.94%) 1.12% (1.68%)
Free cash flow yield 3.88% 5.26% 0.54%

Profitability

Metric CERT PRVA Health Information Services median
Gross margin 61.48% 10.03% 63.38%
Operating margin 0.29% 1.90% (8.35%)
Net margin (16.26%) 1.19% (14.70%)
Free cash flow margin 12.97% 5.56% 0.58%
Return on equity (6.72%) 3.58% (6.82%)
Return on assets (4.65%) 2.04% (6.02%)
Return on invested capital 0.07% 6.59% 0.00%

Growth

Metric CERT PRVA Health Information Services median
Revenue growth (TTM) 6.89% 24.10% 8.62%
EPS growth (last fiscal year) 87.50% 63.64% —
Revenue growth, 5-year CAGR 11.45% 21.04% 12.36%
Net income growth, 5-year CAGR 0.00% (6.01%) 0.00%

Health

Metric CERT PRVA Health Information Services median
Debt to equity 0.30 0.00 0.01
Current ratio 2.55 1.62 2.37
Net debt to EBITDA 1.07 (10.87) 0.50

Dividend

Metric CERT PRVA Health Information Services median
Dividend yield — — 0.85%
Payout ratio 0.00 0.00 0.00

Size

Metric CERT PRVA Health Information Services median
Market cap 1.36b 2.48b 352.86m

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