Karooooo Ltd. (KARO) vs ePlus inc. (PLUS)

Karooooo Ltd. and ePlus inc. are both Software Application companies. ePlus inc. is the larger, with a market value of $2.2B against $2.0B — 1.1× the size. ePlus inc. trades at the lower P/E: 17.9× against 30.1×. Karooooo Ltd. grew revenue faster over the last twelve months: 31.7% against 16.2%. Karooooo Ltd. has the higher net margin (17.7% vs 4.91%) and the higher return on invested capital (31.5% vs 16.3%). Both pay a dividend; Karooooo Ltd. yields more (2.38% vs 1.26%). Across the 22 metrics below, Karooooo Ltd. leads on 11 and ePlus inc. on 11.

Valuation

Metric KARO PLUS Software Application median
P/E 30.14 17.92 25.90
P/S 5.35 0.87 3.04
P/B 10.20 1.99 2.60
Price to free cash flow n/m 38.99 17.17
EV/EBITDA 20.97 9.02 15.48
EV/Sales 5.33 0.69 2.89
Earnings yield 3.32% 5.58% 0.00%
Free cash flow yield (3.30%) 2.56% 1.98%

Profitability

Metric KARO PLUS Software Application median
Gross margin 67.34% 25.06% 66.89%
Operating margin 25.43% 6.62% 0.00%
Net margin 17.65% 4.91% 0.00%
Free cash flow margin 35.39% 2.24% 5.77%
Return on equity 35.47% 11.50% 0.00%
Return on assets 19.44% 6.56% 0.00%
Return on invested capital 31.48% 16.25% 0.00%

Growth

Metric KARO PLUS Software Application median
Revenue growth (TTM) 31.71% 16.21% 12.27%
EPS growth (last fiscal year) 12.88% 24.20% 32.11%
Revenue growth, 5-year CAGR 17.58% 9.27% 14.34%
Net income growth, 5-year CAGR 24.02% 12.26% 0.00%

Health

Metric KARO PLUS Software Application median
Debt to equity 0.17 0.00 0.02
Current ratio 0.64 2.13 1.53
Net debt to EBITDA (0.26) (2.12) 0.09

Dividend

Metric KARO PLUS Software Application median
Dividend yield 2.38% 1.26% 1.10%
Payout ratio 0.72 0.23 0.28

Size

Metric KARO PLUS Software Application median
Market cap 1.95b 2.15b 487.58m

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