Information Services Group, Inc. (III) vs VERRA MOBILITY CORP (VRRM)

Information Services Group, Inc. and VERRA MOBILITY CORP are both Information Technology Services companies. VERRA MOBILITY CORP is the larger, with a market value of $506.1M against $255.1M — 2.0× the size. VERRA MOBILITY CORP trades at the lower P/E: 12.0× against 21.9×. VERRA MOBILITY CORP grew revenue faster over the last twelve months: 11.1% against 4.18%. Information Services Group, Inc. has the higher net margin (4.67% vs 4.40%) and the higher return on invested capital (9.81% vs 7.10%). Across the 22 metrics below, VERRA MOBILITY CORP leads on 14 and Information Services Group, Inc. on 8.

Valuation

Metric III VRRM Information Technology Services median
P/E 21.92 12.00 14.63
P/S 1.01 0.49 1.13
P/B 2.64 2.20 2.10
Price to free cash flow 14.91 5.08 10.11
EV/EBITDA 11.44 5.79 8.56
EV/Sales 1.15 1.46 1.20
Earnings yield 4.56% 8.33% 4.56%
Free cash flow yield 6.71% 19.69% 4.37%

Profitability

Metric III VRRM Information Technology Services median
Gross margin 44.80% 55.50% 31.05%
Operating margin 8.24% 13.59% 3.30%
Net margin 4.67% 4.40% 2.09%
Free cash flow margin 6.77% 9.62% 0.00%
Return on equity 12.30% 15.38% 4.12%
Return on assets 5.77% 2.67% 0.61%
Return on invested capital 9.81% 7.10% 0.57%

Growth

Metric III VRRM Information Technology Services median
Revenue growth (TTM) 4.18% 11.10% 7.12%
EPS growth (last fiscal year) 216.67% 347.37% —
Revenue growth, 5-year CAGR (0.36%) 19.99% 7.71%
Net income growth, 5-year CAGR 27.66% 0.00% 0.00%

Health

Metric III VRRM Information Technology Services median
Debt to equity 0.62 4.63 0.45
Current ratio 2.81 2.06 1.66
Net debt to EBITDA 1.35 2.70 0.44

Dividend

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

Size

Metric III VRRM Information Technology Services median
Market cap 255.14m 506.10m 1.36b

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