Grindr Inc. (GRND) vs SPS Commerce, Inc. (SPSC)

Grindr Inc. and SPS Commerce, Inc. are both Software Application companies. Grindr Inc. and SPS Commerce, Inc. are of similar size ($3.0B and $2.7B). Grindr Inc. trades at the lower P/E: 31.5× against 39.1×. Grindr Inc. grew revenue faster over the last twelve months: 32.4% against 9.80%. Grindr Inc. has the higher net margin (18.8% vs 10.1%) and the higher return on invested capital (25.8% vs 8.07%). Across the 20 metrics below, Grindr Inc. leads on 12 and SPS Commerce, Inc. on 8.

Valuation

Metric GRND SPSC Software Application median
P/E 31.54 39.09 24.79
P/S 5.47 3.84 2.67
P/B n/m 3.16 3.01
Price to free cash flow 19.50 14.95 16.59
EV/EBITDA 20.17 17.51 14.40
EV/Sales 6.21 3.62 2.62
Earnings yield 3.17% 2.56% 0.00%
Free cash flow yield 5.13% 6.69% 1.91%

Profitability

Metric GRND SPSC Software Application median
Gross margin 74.94% 69.82% 67.03%
Operating margin 29.77% 12.80% 0.00%
Net margin 18.75% 10.10% 0.00%
Free cash flow margin 28.03% 25.72% 4.32%
Return on equity 108.65% 8.26% 0.00%
Return on assets 18.92% 6.94% 0.00%
Return on invested capital 25.77% 8.07% 0.00%

Growth

Metric GRND SPSC Software Application median
Revenue growth (TTM) 32.38% 9.80% 12.40%
EPS growth (last fiscal year) 158.11% 20.59% —
Revenue growth, 5-year CAGR — 19.17% 13.72%
Net income growth, 5-year CAGR 0.00% 15.41% 0.00%

Health

Metric GRND SPSC Software Application median
Debt to equity (32.91) 0.00 0.02
Current ratio 1.10 2.26 1.55
Net debt to EBITDA 2.27 (0.86) 0.06

Dividend

Metric GRND SPSC Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric GRND SPSC Software Application median
Market cap 2.73b 3.00b 396.11m

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