Cognyte Software Ltd. (CGNT) vs i3 Verticals, Inc. (IIIV)

Cognyte Software Ltd. and i3 Verticals, Inc. are both Software Infrastructure companies. Cognyte Software Ltd. is the larger, with a market value of $597.4M against $509.6M — 1.2× the size. Cognyte Software Ltd. has negative trailing earnings, so its P/E is not meaningful; i3 Verticals, Inc. trades at 47.5×. Cognyte Software Ltd. grew revenue faster over the last twelve months: 12.0% against 4.09%. i3 Verticals, Inc. has the higher net margin (3.90% vs −0.01%) and the lower return on invested capital (0.72% vs 9.28%). Across the 20 metrics below, i3 Verticals, Inc. leads on 11 and Cognyte Software Ltd. on 9.

Valuation

Metric CGNT IIIV Software Infrastructure median
P/E n/m 47.50 24.52
P/S 1.41 1.69 2.78
P/B 2.72 0.92 2.84
Price to free cash flow 17.85 8.80 18.22
EV/EBITDA 18.50 14.17 13.98
EV/Sales 1.29 2.32 2.92
Earnings yield 0.00% 2.11% 0.00%
Free cash flow yield 5.60% 11.36% 0.37%

Profitability

Metric CGNT IIIV Software Infrastructure median
Gross margin 72.96% 100.00% 57.91%
Operating margin 4.13% 2.72% 0.00%
Net margin (0.01%) 3.90% 0.00%
Free cash flow margin 7.93% 19.22% 0.00%
Return on equity (0.03%) 1.87% 0.00%
Return on assets (0.01%) 1.36% 0.00%
Return on invested capital 9.28% 0.72% 0.00%

Growth

Metric CGNT IIIV Software Infrastructure median
Revenue growth (TTM) 11.99% 4.09% 14.42%
EPS growth (last fiscal year) 94.12% (84.78%) 17.35%
Revenue growth, 5-year CAGR (2.04%) 7.26% 16.15%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CGNT IIIV Software Infrastructure median
Debt to equity 0.00 0.29 0.02
Current ratio 1.34 1.21 1.53
Net debt to EBITDA (4.63) (1.93) 0.05

Dividend

Metric CGNT IIIV Software Infrastructure median
Dividend yield — — 1.04%
Payout ratio — — 0.29

Size

Metric CGNT IIIV Software Infrastructure median
Market cap 597.41m 509.59m 606.60m

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