Global Payments Inc. (GPN) vs Okta, Inc. (OKTA)

Global Payments Inc. and Okta, Inc. are both Software Infrastructure companies. Okta, Inc. is the larger, with a market value of $29.9B against $25.1B — 1.2× the size. Global Payments Inc. has negative trailing earnings, so its P/E is not meaningful; Okta, Inc. trades at 100×. Global Payments Inc. grew revenue faster over the last twelve months: 61.0% against 11.2%. Okta, Inc. has the higher net margin (9.63% vs −11.2%) and the higher return on invested capital (3.10% vs 1.20%). Across the 20 metrics below, Okta, Inc. leads on 14 and Global Payments Inc. on 6.

Valuation

Metric GPN OKTA Software Infrastructure median
P/E n/m 100.24 24.52
P/S 2.24 9.61 2.78
P/B 1.09 4.23 2.84
Price to free cash flow n/m 30.82 18.22
EV/EBITDA 11.32 56.53 13.98
EV/Sales 3.72 9.09 2.92
Earnings yield (4.65%) 1.00% 0.00%
Free cash flow yield (0.66%) 3.24% 0.37%

Profitability

Metric GPN OKTA Software Infrastructure median
Gross margin 61.55% 78.13% 57.91%
Operating margin 6.77% 7.55% 0.00%
Net margin (11.20%) 9.63% 0.00%
Free cash flow margin (1.47%) 31.17% 0.00%
Return on equity (5.47%) 4.31% 0.00%
Return on assets (2.33%) 3.17% 0.00%
Return on invested capital 1.20% 3.10% 0.00%

Growth

Metric GPN OKTA Software Infrastructure median
Revenue growth (TTM) 61.04% 11.22% 14.42%
EPS growth (last fiscal year) (6.01%) 2,083.33% 17.35%
Revenue growth, 5-year CAGR 0.75% 28.44% 16.15%
Net income growth, 5-year CAGR 19.09% 0.00% 0.00%

Health

Metric GPN OKTA Software Infrastructure median
Debt to equity 0.95 0.00 0.02
Current ratio 0.82 1.53 1.53
Net debt to EBITDA 3.98 (5.43) 0.05

Dividend

Metric GPN OKTA Software Infrastructure median
Dividend yield 1.03% — 1.04%
Payout ratio — — 0.29

Size

Metric GPN OKTA Software Infrastructure median
Market cap 25.13b 29.92b 606.60m

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