Information Services Group, Inc. (III) vs TechTarget, Inc. (TTGT)

Information Services Group, Inc. and TechTarget, Inc. are both Information Technology Services companies. Information Services Group, Inc. and TechTarget, Inc. are of similar size ($271.3M and $255.1M). TechTarget, Inc. has negative trailing earnings, so its P/E is not meaningful; Information Services Group, Inc. trades at 21.9×. TechTarget, Inc. grew revenue faster over the last twelve months: 25.3% against 4.18%. Information Services Group, Inc. has the higher net margin (4.67% vs −36.9%) and the higher return on invested capital (9.81% vs −24.3%). Across the 20 metrics below, Information Services Group, Inc. leads on 14 and TechTarget, Inc. on 6.

Valuation

Metric III TTGT Information Technology Services median
P/E 21.92 n/m 14.63
P/S 1.01 0.57 1.13
P/B 2.64 0.55 2.10
Price to free cash flow 14.91 n/m 10.11
EV/EBITDA 11.44 55.47 8.56
EV/Sales 1.15 1.58 1.20
Earnings yield 4.56% (63.97%) 4.56%
Free cash flow yield 6.71% (5.03%) 4.37%

Profitability

Metric III TTGT Information Technology Services median
Gross margin 44.80% 59.21% 31.05%
Operating margin 8.24% (46.52%) 3.30%
Net margin 4.67% (36.85%) 2.09%
Free cash flow margin 6.77% (2.87%) 0.00%
Return on equity 12.30% (30.42%) 4.12%
Return on assets 5.77% (18.34%) 0.61%
Return on invested capital 9.81% (24.27%) 0.57%

Growth

Metric III TTGT Information Technology Services median
Revenue growth (TTM) 4.18% 25.33% 7.12%
EPS growth (last fiscal year) 216.67% (430.57%) —
Revenue growth, 5-year CAGR (0.36%) 26.82% 7.71%
Net income growth, 5-year CAGR 27.66% 0.00% 0.00%

Health

Metric III TTGT Information Technology Services median
Debt to equity 0.62 0.24 0.45
Current ratio 2.81 1.15 1.66
Net debt to EBITDA 1.35 6.19 0.44

Dividend

Metric III TTGT Information Technology Services median
Dividend yield 3.99% — 1.21%
Payout ratio 0.52 0.00 0.00

Size

Metric III TTGT Information Technology Services median
Market cap 255.14m 271.25m 1.36b

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