FatPipe, Inc. (FATN) vs Usio Inc (USIO)

FatPipe, Inc. and Usio Inc are both Software Infrastructure companies. Usio Inc is the larger, with a market value of $83.5M against $64.6M — 1.3× the size. Usio Inc has negative trailing earnings, so its P/E is not meaningful; FatPipe, Inc. trades at 9.2×. FatPipe, Inc. grew revenue faster over the last twelve months: 42.7% against 10.4%. FatPipe, Inc. has the higher net margin (31.6% vs −1.63%) and the higher return on invested capital (9.46% vs −5.13%). Across the 18 metrics below, FatPipe, Inc. leads on 13 and Usio Inc on 5.

Valuation

Metric FATN USIO Software Infrastructure median
P/E 9.19 n/m 24.52
P/S 2.98 0.89 2.78
P/B 2.27 4.38 2.84
Price to free cash flow n/m n/m 18.22
EV/EBITDA 13.92 204.70 13.98
EV/Sales 3.02 0.83 2.92
Earnings yield 10.88% (1.72%) 0.00%
Free cash flow yield (3.93%) (1.39%) 0.37%

Profitability

Metric FATN USIO Software Infrastructure median
Gross margin 90.26% 22.26% 57.91%
Operating margin 20.46% (1.21%) 0.00%
Net margin 31.57% (1.63%) 0.00%
Free cash flow margin (11.70%) (1.23%) 0.00%
Return on equity 27.45% (8.04%) 0.00%
Return on assets 19.78% (1.30%) 0.00%
Return on invested capital 9.46% (5.13%) 0.00%

Growth

Metric FATN USIO Software Infrastructure median
Revenue growth (TTM) 42.73% 10.39% 14.42%
EPS growth (last fiscal year) 130.41% (175.00%) 17.35%
Revenue growth, 5-year CAGR — 21.50% 16.15%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric FATN USIO Software Infrastructure median
Debt to equity 0.15 0.07 0.02
Current ratio 5.13 1.10 1.53
Net debt to EBITDA (0.25) 14.68 0.05

Dividend

Metric FATN USIO Software Infrastructure median
Dividend yield — — 1.04%
Payout ratio — — 0.29

Size

Metric FATN USIO Software Infrastructure median
Market cap 64.57m 83.50m 606.60m

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