JFrog Ltd. (FROG) vs Paycom Software, Inc. (PAYC)

JFrog Ltd. and Paycom Software, Inc. are both Software Application companies. JFrog Ltd. is the larger, with a market value of $11.7B against $9.8B — 1.2× the size. JFrog Ltd. has negative trailing earnings, so its P/E is not meaningful; Paycom Software, Inc. trades at 23.4×. JFrog Ltd. grew revenue faster over the last twelve months: 26.4% against 9.22%. Paycom Software, Inc. has the higher net margin (22.8% vs −7.35%) and the higher return on invested capital (31.8% vs −31.7%). Across the 20 metrics below, Paycom Software, Inc. leads on 13 and JFrog Ltd. on 7.

Valuation

Metric FROG PAYC Software Application median
P/E n/m 23.38 24.79
P/S 18.11 4.72 2.67
P/B 11.31 17.67 3.01
Price to free cash flow 64.13 18.10 16.59
EV/EBITDA n/m 12.79 14.40
EV/Sales 16.73 5.05 2.62
Earnings yield (0.41%) 4.28% 0.00%
Free cash flow yield 1.56% 5.53% 1.91%

Profitability

Metric FROG PAYC Software Application median
Gross margin 77.86% 83.66% 67.03%
Operating margin (11.52%) 30.29% 0.00%
Net margin (7.35%) 22.78% 0.00%
Free cash flow margin 28.29% 26.87% 4.32%
Return on equity (4.93%) 41.09% 0.00%
Return on assets (3.27%) 10.56% 0.00%
Return on invested capital (31.70%) 31.83% 0.00%

Growth

Metric FROG PAYC Software Application median
Revenue growth (TTM) 26.37% 9.22% 12.40%
EPS growth (last fiscal year) 1.59% (9.42%) —
Revenue growth, 5-year CAGR 28.66% 19.51% 13.72%
Net income growth, 5-year CAGR 0.00% 25.88% 0.00%

Health

Metric FROG PAYC Software Application median
Debt to equity 0.00 1.57 0.02
Current ratio 2.14 1.07 1.55
Net debt to EBITDA 9.70 (0.50) 0.06

Dividend

Metric FROG PAYC Software Application median
Dividend yield — 0.57% 1.25%
Payout ratio 0.00 0.07 0.00

Size

Metric FROG PAYC Software Application median
Market cap 11.70b 9.78b 396.11m

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