N-able, Inc. (NABL) vs VERRA MOBILITY CORP (VRRM)

N-able, Inc. and VERRA MOBILITY CORP are both Information Technology Services companies. N-able, Inc. is the larger, with a market value of $759.4M against $506.1M — 1.5× the size. N-able, Inc. has negative trailing earnings, so its P/E is not meaningful; VERRA MOBILITY CORP trades at 12.0×. VERRA MOBILITY CORP grew revenue faster over the last twelve months: 11.1% against 10.6%. VERRA MOBILITY CORP has the higher net margin (4.40% vs −1.10%) and the higher return on invested capital (7.10% vs 2.99%). Across the 20 metrics below, VERRA MOBILITY CORP leads on 16 and N-able, Inc. on 4.

Valuation

Metric NABL VRRM Information Technology Services median
P/E n/m 12.00 14.63
P/S 1.42 0.49 1.13
P/B 0.94 2.20 2.10
Price to free cash flow 12.53 5.08 10.11
EV/EBITDA 10.40 5.79 8.56
EV/Sales 1.94 1.46 1.20
Earnings yield (0.65%) 8.33% 4.56%
Free cash flow yield 7.98% 19.69% 4.37%

Profitability

Metric NABL VRRM Information Technology Services median
Gross margin 76.56% 55.50% 31.05%
Operating margin 9.71% 13.59% 3.30%
Net margin (1.10%) 4.40% 2.09%
Free cash flow margin 11.31% 9.62% 0.00%
Return on equity (0.73%) 15.38% 4.12%
Return on assets (0.42%) 2.67% 0.61%
Return on invested capital 2.99% 7.10% 0.57%

Growth

Metric NABL VRRM Information Technology Services median
Revenue growth (TTM) 10.59% 11.10% 7.12%
EPS growth (last fiscal year) (156.25%) 347.37% —
Revenue growth, 5-year CAGR 10.93% 19.99% 7.71%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NABL VRRM Information Technology Services median
Debt to equity 0.49 4.63 0.45
Current ratio 1.30 2.06 1.66
Net debt to EBITDA 3.48 2.70 0.44

Dividend

Metric NABL VRRM Information Technology Services median
Dividend yield — — 1.21%
Payout ratio 0.00 0.00 0.00

Size

Metric NABL VRRM Information Technology Services median
Market cap 759.40m 506.10m 1.36b

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