Life360, Inc. (LIF) vs SPS Commerce, Inc. (SPSC)

Life360, Inc. and SPS Commerce, Inc. are both Software Application companies. Life360, Inc. is the larger, with a market value of $3.3B against $3.0B — 1.1× the size. Life360, Inc. trades at the lower P/E: 22.1× against 39.1×. Life360, Inc. grew revenue faster over the last twelve months: 34.0% against 9.80%. Life360, Inc. has the higher net margin (25.7% vs 10.1%) and the lower return on invested capital (0.89% vs 8.07%). Across the 21 metrics below, SPS Commerce, Inc. leads on 11 and Life360, Inc. on 10.

Valuation

Metric LIF SPSC Software Application median
P/E 22.05 39.09 24.79
P/S 5.83 3.84 2.67
P/B 5.45 3.16 3.01
Price to free cash flow 34.19 14.95 16.59
EV/EBITDA n/m 17.51 14.40
EV/Sales 5.57 3.62 2.62
Earnings yield 4.53% 2.56% 0.00%
Free cash flow yield 2.92% 6.69% 1.91%

Profitability

Metric LIF SPSC Software Application median
Gross margin 77.59% 69.82% 67.03%
Operating margin 1.14% 12.80% 0.00%
Net margin 25.72% 10.10% 0.00%
Free cash flow margin 17.38% 25.72% 4.32%
Return on equity 30.06% 8.26% 0.00%
Return on assets 16.32% 6.94% 0.00%
Return on invested capital 0.89% 8.07% 0.00%

Growth

Metric LIF SPSC Software Application median
Revenue growth (TTM) 33.96% 9.80% 12.40%
EPS growth (last fiscal year) 3,050.00% 20.59% —
Revenue growth, 5-year CAGR 43.42% 19.17% 13.72%
Net income growth, 5-year CAGR 0.00% 15.41% 0.00%

Health

Metric LIF SPSC Software Application median
Debt to equity 0.51 0.00 0.02
Current ratio 5.60 2.26 1.55
Net debt to EBITDA 2.17 (0.86) 0.06

Dividend

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

Size

Metric LIF SPSC Software Application median
Market cap 3.32b 3.00b 396.11m

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