Crexendo Inc. (CXDO) vs KVH Industries, Inc. (KVHI)

Crexendo Inc. and KVH Industries, Inc. are both Telecom Services companies. Crexendo Inc. is the larger, with a market value of $195.2M against $134.1M — 1.5× the size. KVH Industries, Inc. has negative trailing earnings, so its P/E is not meaningful; Crexendo Inc. trades at 43.5×. Crexendo Inc. grew revenue faster over the last twelve months: 25.5% against 15.8%. Crexendo Inc. has the higher net margin (5.31% vs −4.68%) and the higher return on invested capital (3.83% vs −7.52%). Across the 20 metrics below, Crexendo Inc. leads on 13 and KVH Industries, Inc. on 7.

Valuation

Metric CXDO KVHI Telecom Services median
P/E 43.50 n/m 13.27
P/S 2.47 1.15 0.95
P/B 2.56 1.10 1.47
Price to free cash flow n/m 33.95 8.72
EV/EBITDA 21.41 71.67 6.85
EV/Sales 2.30 0.69 1.87
Earnings yield 2.30% (4.06%) 1.66%
Free cash flow yield (5.10%) 2.95% 5.53%

Profitability

Metric CXDO KVHI Telecom Services median
Gross margin 62.82% 25.07% 51.26%
Operating margin 4.86% (7.00%) 7.62%
Net margin 5.31% (4.68%) 4.22%
Free cash flow margin 14.28% 3.38% 4.73%
Return on equity 6.30% (4.35%) 5.80%
Return on assets 4.98% (3.86%) 0.00%
Return on invested capital 3.83% (7.52%) 3.41%

Growth

Metric CXDO KVHI Telecom Services median
Revenue growth (TTM) 25.49% 15.83% 3.31%
EPS growth (last fiscal year) 166.67% 33.33% —
Revenue growth, 5-year CAGR 32.99% (6.90%) 1.50%
Net income growth, 5-year CAGR (8.58%) 0.00% 0.00%

Health

Metric CXDO KVHI Telecom Services median
Debt to equity 0.06 0.00 0.63
Current ratio 2.06 7.07 1.13
Net debt to EBITDA (3.93) 147.18 1.86

Dividend

Metric CXDO KVHI Telecom Services median
Dividend yield 0.09% — 4.06%
Payout ratio 0.00 0.00 0.00

Size

Metric CXDO KVHI Telecom Services median
Market cap 195.20m 134.06m 3.06b

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