Gloo Holdings, Inc. (GLOO) vs Ribbon Communications Inc. (RBBN)

Gloo Holdings, Inc. and Ribbon Communications Inc. are both Software Application companies. Gloo Holdings, Inc. and Ribbon Communications Inc. are of similar size ($277.7M and $268.2M). Gloo Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Ribbon Communications Inc. trades at 14.9×. Ribbon Communications Inc. has the higher net margin (2.32% vs −90.1%) and the higher return on invested capital (−2.63% vs −41.1%). Across the 16 metrics below, Ribbon Communications Inc. leads on 13 and Gloo Holdings, Inc. on 3.

Valuation

Metric GLOO RBBN Software Application median
P/E n/m 14.86 25.60
P/S 1.57 0.36 3.06
P/B 1.55 0.75 2.63
Price to free cash flow n/m n/m 18.02
EV/EBITDA n/m 18.38 15.42
EV/Sales 1.56 0.74 2.96
Earnings yield (253.82%) 6.73% 0.00%
Free cash flow yield (32.43%) (10.24%) 1.94%

Profitability

Metric GLOO RBBN Software Application median
Gross margin 29.69% 48.27% 67.03%
Operating margin (65.44%) (3.62%) 0.00%
Net margin (90.10%) 2.32% 0.00%
Free cash flow margin (50.91%) (3.70%) 5.23%
Return on equity 219.27% 4.96% 0.00%
Return on assets (77.40%) 1.65% 0.00%
Return on invested capital (41.05%) (2.63%) 0.00%

Growth

Metric GLOO RBBN Software Application median
Revenue growth (TTM) — (7.78%) 12.43%
EPS growth (last fiscal year) 41.17% 170.97% 32.11%
Revenue growth, 5-year CAGR — 0.02% 14.34%
Net income growth, 5-year CAGR — (14.86%) 0.00%

Health

Metric GLOO RBBN Software Application median
Debt to equity 0.24 0.88 0.03
Current ratio 1.23 1.32 1.51
Net debt to EBITDA 0.24 3.89 0.09

Dividend

Metric GLOO RBBN Software Application median
Dividend yield — — 0.94%
Payout ratio — — 0.29

Size

Metric GLOO RBBN Software Application median
Market cap 268.19m 277.72m 459.77m

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