First Advantage Corporation (FA) vs Target Hospitality Corp. (TH)

First Advantage Corporation and Target Hospitality Corp. are both Specialty Business Services companies. First Advantage Corporation is the larger, with a market value of $3.4B against $2.2B — 1.6× the size. Target Hospitality Corp. has negative trailing earnings, so its P/E is not meaningful; First Advantage Corporation trades at 135×. First Advantage Corporation grew revenue faster over the last twelve months: 32.9% against 11.9%. First Advantage Corporation has the higher net margin (1.51% vs −10.9%) and the higher return on invested capital (3.59% vs −5.94%). Across the 20 metrics below, First Advantage Corporation leads on 18 and Target Hospitality Corp. on 2.

Valuation

Metric FA TH Specialty Business Services median
P/E 135.27 n/m 23.86
P/S 2.02 5.94 1.06
P/B 2.60 5.58 2.37
Price to free cash flow 17.22 197.76 16.54
EV/EBITDA 11.98 55.08 11.51
EV/Sales 3.12 6.56 1.51
Earnings yield 0.74% (1.83%) 2.14%
Free cash flow yield 5.81% 0.51% 1.55%

Profitability

Metric FA TH Specialty Business Services median
Gross margin 45.22% 13.73% 35.31%
Operating margin 10.68% (11.10%) 3.43%
Net margin 1.51% (10.85%) 1.67%
Free cash flow margin 11.75% 3.00% 3.28%
Return on equity 1.94% (9.78%) 0.58%
Return on assets 0.66% (6.34%) 0.33%
Return on invested capital 3.59% (5.94%) 0.65%

Growth

Metric FA TH Specialty Business Services median
Revenue growth (TTM) 32.89% 11.92% 6.04%
EPS growth (last fiscal year) 72.97% (152.86%) —
Revenue growth, 5-year CAGR 25.33% 7.33% 7.66%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric FA TH Specialty Business Services median
Debt to equity 1.57 0.11 0.21
Current ratio 2.53 0.65 1.62
Net debt to EBITDA 4.75 (0.17) 1.16

Dividend

Metric FA TH Specialty Business Services median
Dividend yield — — 1.61%
Payout ratio 0.00 0.00 0.00

Size

Metric FA TH Specialty Business Services median
Market cap 3.42b 2.16b 879.14m

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