MarketAxess Holdings Inc. (MKTX) vs TeraWulf Inc. (WULF)

MarketAxess Holdings Inc. and TeraWulf Inc. are both Capital Markets companies. TeraWulf Inc. is the larger, with a market value of $8.3B against $5.8B — 1.4× the size. TeraWulf Inc. has negative trailing earnings, so its P/E is not meaningful; MarketAxess Holdings Inc. trades at 19.3×. TeraWulf Inc. grew revenue faster over the last twelve months: 14.7% against 3.93%. MarketAxess Holdings Inc. has the higher net margin (35.2% vs −1,179.9%) and the higher return on invested capital (24.8% vs −9.95%). Across the 19 metrics below, MarketAxess Holdings Inc. leads on 15 and TeraWulf Inc. on 4.

Valuation

Metric MKTX WULF Capital Markets median
P/E 19.32 n/m 15.78
P/S 6.64 46.28 2.32
P/B 4.67 51.82 1.89
Price to free cash flow 40.54 n/m 6.25
EV/EBITDA 12.40 n/m 8.87
EV/Sales 6.24 61.12 2.28
Earnings yield 5.18% (27.76%) (3.77%)
Free cash flow yield 2.47% (31.40%) (1.49%)

Profitability

Metric MKTX WULF Capital Markets median
Gross margin 100.00% 69.26% 62.80%
Operating margin 40.50% (250.37%) 0.00%
Net margin 35.22% (1,179.94%) (0.55%)
Free cash flow margin 16.39% (1,453.34%) 0.00%
Return on equity 23.34% (1,247.13%) 0.00%
Return on assets 13.94% (43.71%) 0.00%
Return on invested capital 24.79% (9.95%) 0.00%

Growth

Metric MKTX WULF Capital Markets median
Revenue growth (TTM) 3.93% 14.65% 21.02%
EPS growth (last fiscal year) (8.79%) (690.48%) —
Revenue growth, 5-year CAGR 4.19% 57.07% 18.16%
Net income growth, 5-year CAGR (3.80%) 0.00% 0.00%

Health

Metric MKTX WULF Capital Markets median
Debt to equity 0.09 35.34 0.08
Current ratio 1.85 0.75 1.51
Net debt to EBITDA (1.22) (24.16) (0.24)

Dividend

Metric MKTX WULF Capital Markets median
Dividend yield 1.35% — 2.20%
Payout ratio 0.42 0.00 0.00

Size

Metric MKTX WULF Capital Markets median
Market cap 5.76b 8.25b 724.58m

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