Shift4 Payments, Inc. (FOUR) vs NetScout Systems, Inc. (NTCT)

Shift4 Payments, Inc. and NetScout Systems, Inc. are both Software Infrastructure companies. Shift4 Payments, Inc. and NetScout Systems, Inc. are of similar size ($3.0B and $2.9B). NetScout Systems, Inc. trades at the lower P/E: 23.6× against 61.0×. Shift4 Payments, Inc. grew revenue faster over the last twelve months: 32.4% against 5.79%. NetScout Systems, Inc. has the higher net margin (13.7% vs 0.92%) and the higher return on invested capital (7.91% vs 4.12%). Across the 22 metrics below, NetScout Systems, Inc. leads on 17 and Shift4 Payments, Inc. on 5.

Valuation

Metric FOUR NTCT Software Infrastructure median
P/E 61.03 23.62 28.02
P/S 1.27 3.21 3.07
P/B 3.51 1.70 3.36
Price to free cash flow 19.60 11.03 17.12
EV/EBITDA 10.89 12.54 14.91
EV/Sales 2.14 2.66 3.03
Earnings yield 1.64% 4.23% 0.13%
Free cash flow yield 5.10% 9.07% 1.15%

Profitability

Metric FOUR NTCT Software Infrastructure median
Gross margin 35.91% 79.84% 61.23%
Operating margin 8.11% 14.82% 0.00%
Net margin 0.92% 13.71% 0.00%
Free cash flow margin 6.50% 29.22% 1.67%
Return on equity 3.20% 7.54% 0.59%
Return on assets 0.56% 5.42% 0.00%
Return on invested capital 4.12% 7.91% 0.00%

Growth

Metric FOUR NTCT Software Infrastructure median
Revenue growth (TTM) 32.44% 5.79% 13.41%
EPS growth (last fiscal year) (64.36%) 125.39% —
Revenue growth, 5-year CAGR 40.37% 0.67% 15.81%
Net income growth, 5-year CAGR 0.00% 37.62% 0.00%

Health

Metric FOUR NTCT Software Infrastructure median
Debt to equity 2.60 0.00 0.06
Current ratio 1.21 1.83 1.55
Net debt to EBITDA 4.44 (4.02) 0.08

Dividend

Metric FOUR NTCT Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric FOUR NTCT Software Infrastructure median
Market cap 3.04b 2.85b 835.96m

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