Donnelley Financial Solutions (DFIN) vs Red Violet, Inc. (RDVT)

Donnelley Financial Solutions and Red Violet, Inc. are both Software Application companies. Donnelley Financial Solutions and Red Violet, Inc. are of similar size ($1.3B and $1.2B). Donnelley Financial Solutions trades at the lower P/E: 32.6× against 67.7×. Red Violet, Inc. grew revenue faster over the last twelve months: 20.2% against 2.98%. Red Violet, Inc. has the higher net margin (16.5% vs 4.53%) and the higher return on invested capital (18.0% vs 16.2%). Across the 21 metrics below, Red Violet, Inc. leads on 12 and Donnelley Financial Solutions on 9.

Valuation

Metric DFIN RDVT Software Application median
P/E 32.61 67.72 24.79
P/S 1.58 11.24 2.67
P/B 3.17 9.98 3.01
Price to free cash flow 8.06 52.54 16.59
EV/EBITDA 6.58 37.03 14.40
EV/Sales 1.81 10.77 2.62
Earnings yield 3.07% 1.48% 0.00%
Free cash flow yield 12.40% 1.90% 1.91%

Profitability

Metric DFIN RDVT Software Application median
Gross margin 64.21% 84.70% 67.03%
Operating margin 18.91% 17.89% 0.00%
Net margin 4.53% 16.54% 0.00%
Free cash flow margin 19.59% 21.40% 4.32%
Return on equity 8.59% 15.76% 0.00%
Return on assets 4.12% 14.54% 0.00%
Return on invested capital 16.23% 17.96% 0.00%

Growth

Metric DFIN RDVT Software Application median
Revenue growth (TTM) 2.98% 20.18% 12.40%
EPS growth (last fiscal year) (62.42%) 82.00% —
Revenue growth, 5-year CAGR (3.03%) 21.15% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DFIN RDVT Software Application median
Debt to equity 0.53 0.00 0.02
Current ratio 1.33 10.88 1.55
Net debt to EBITDA 0.71 (1.83) 0.06

Dividend

Metric DFIN RDVT Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric DFIN RDVT Software Application median
Market cap 1.21b 1.27b 396.11m

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