Cerence Inc. (CRNC) vs Rimini Street, Inc. (RMNI)

Cerence Inc. and Rimini Street, Inc. are both Software Application companies. Rimini Street, Inc. is the larger, with a market value of $399.6M against $358.7M — 1.1× the size. Cerence Inc. has negative trailing earnings, so its P/E is not meaningful; Rimini Street, Inc. trades at 50.2×. Cerence Inc. grew revenue faster over the last twelve months: 25.8% against 0.60%. Rimini Street, Inc. has the higher net margin (1.69% vs −4.97%) and the lower return on invested capital (0.00% vs 7.95%). Across the 19 metrics below, Rimini Street, Inc. leads on 10 and Cerence Inc. on 9.

Valuation

Metric CRNC RMNI Software Application median
P/E n/m 50.24 24.79
P/S 1.16 0.91 2.67
P/B 2.16 n/m 3.01
Price to free cash flow 4.57 6.14 16.59
EV/EBITDA 12.63 10.44 14.40
EV/Sales 1.50 0.74 2.62
Earnings yield (4.53%) 1.99% 0.00%
Free cash flow yield 21.89% 16.29% 1.91%

Profitability

Metric CRNC RMNI Software Application median
Gross margin 78.69% 60.07% 67.03%
Operating margin 8.72% 4.78% 0.00%
Net margin (4.97%) 1.69% 0.00%
Free cash flow margin 25.41% 14.86% 4.32%
Return on equity (9.56%) (31.72%) 0.00%
Return on assets (2.45%) 1.85% 0.00%
Return on invested capital 7.95% 0.00% 0.00%

Growth

Metric CRNC RMNI Software Application median
Revenue growth (TTM) 25.84% 0.60% 12.40%
EPS growth (last fiscal year) 96.95% 197.50% —
Revenue growth, 5-year CAGR (5.32%) 5.22% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CRNC RMNI Software Application median
Debt to equity 1.04 (2.79) 0.02
Current ratio 2.08 0.84 1.55
Net debt to EBITDA 13.59 (0.76) 0.06

Dividend

Metric CRNC RMNI Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric CRNC RMNI Software Application median
Market cap 358.68m 399.56m 396.11m

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