Lightspeed Commerce Inc. (LSPD) vs Red Violet, Inc. (RDVT)

Lightspeed Commerce Inc. and Red Violet, Inc. are both Software Application companies. Lightspeed Commerce Inc. and Red Violet, Inc. are of similar size ($1.3B and $1.3B). Lightspeed Commerce Inc. has negative trailing earnings, so its P/E is not meaningful; Red Violet, Inc. trades at 67.7×. Red Violet, Inc. grew revenue faster over the last twelve months: 20.2% against 11.6%. Red Violet, Inc. has the higher net margin (16.5% vs −7.81%) and the higher return on invested capital (18.0% vs −7.01%). Across the 19 metrics below, Red Violet, Inc. leads on 15 and Lightspeed Commerce Inc. on 4.

Valuation

Metric LSPD RDVT Software Application median
P/E n/m 67.72 24.79
P/S 1.10 11.24 2.67
P/B 0.98 9.98 3.01
Price to free cash flow n/m 52.54 16.59
EV/EBITDA 171.96 37.03 14.40
EV/Sales 0.81 10.77 2.62
Earnings yield (7.09%) 1.48% 0.00%
Free cash flow yield (1.60%) 1.90% 1.91%

Profitability

Metric LSPD RDVT Software Application median
Gross margin 43.09% 84.70% 67.03%
Operating margin (9.30%) 17.89% 0.00%
Net margin (7.81%) 16.54% 0.00%
Free cash flow margin (1.75%) 21.40% 4.32%
Return on equity (6.65%) 15.76% 0.00%
Return on assets (5.92%) 14.54% 0.00%
Return on invested capital (7.01%) 17.96% 0.00%

Growth

Metric LSPD RDVT Software Application median
Revenue growth (TTM) 11.57% 20.18% 12.40%
EPS growth (last fiscal year) 76.04% 82.00% —
Revenue growth, 5-year CAGR 40.80% 21.15% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LSPD RDVT Software Application median
Debt to equity 0.01 0.00 0.02
Current ratio 3.55 10.88 1.55
Net debt to EBITDA 285.60 (1.83) 0.06

Dividend

Metric LSPD RDVT Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric LSPD RDVT Software Application median
Market cap 1.29b 1.27b 396.11m

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