Gen Digital Inc. (GEN) vs SailPoint, Inc. (SAIL)

Gen Digital Inc. and SailPoint, Inc. are both Software Infrastructure companies. Gen Digital Inc. and SailPoint, Inc. are of similar size ($14.0B and $12.8B). SailPoint, Inc. has negative trailing earnings, so its P/E is not meaningful; Gen Digital Inc. trades at 12.4×. Gen Digital Inc. grew revenue faster over the last twelve months: 20.2% against 20.1%. Gen Digital Inc. has the higher net margin (20.7% vs −16.9%) and the higher return on invested capital (12.9% vs −2.10%). Across the 19 metrics below, Gen Digital Inc. leads on 15 and SailPoint, Inc. on 4.

Valuation

Metric GEN SAIL Software Infrastructure median
P/E 12.43 n/m 28.02
P/S 2.55 10.06 3.07
P/B 4.88 1.71 3.36
Price to free cash flow 8.30 73.42 17.12
EV/EBITDA 7.87 286.97 14.91
EV/Sales 4.04 10.67 3.03
Earnings yield 8.05% (1.65%) 0.13%
Free cash flow yield 12.05% 1.36% 1.15%

Profitability

Metric GEN SAIL Software Infrastructure median
Gross margin 78.01% 66.22% 61.23%
Operating margin 41.68% (18.92%) 0.00%
Net margin 20.73% (16.92%) 0.00%
Free cash flow margin 30.71% 13.70% 1.67%
Return on equity 41.94% (2.88%) 0.59%
Return on assets 6.58% (2.62%) 0.00%
Return on invested capital 12.91% (2.10%) 0.00%

Growth

Metric GEN SAIL Software Infrastructure median
Revenue growth (TTM) 20.16% 20.13% 13.41%
EPS growth (last fiscal year) 52.43% 95.82% —
Revenue growth, 5-year CAGR 14.41% — 15.81%
Net income growth, 5-year CAGR 11.92% — 0.00%

Health

Metric GEN SAIL Software Infrastructure median
Debt to equity 3.07 0.00 0.06
Current ratio 0.47 1.23 1.55
Net debt to EBITDA 2.98 8.93 0.08

Dividend

Metric GEN SAIL Software Infrastructure median
Dividend yield 2.43% — 1.53%
Payout ratio 0.35 — 0.00

Size

Metric GEN SAIL Software Infrastructure median
Market cap 14.00b 12.75b 835.96m

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