Navan, Inc. (NAVN) vs Ringcentral, Inc. (RNG)

Navan, Inc. and Ringcentral, Inc. are both Software Application companies. Navan, Inc. and Ringcentral, Inc. are of similar size ($6.5B and $6.0B). Navan, Inc. has negative trailing earnings, so its P/E is not meaningful; Ringcentral, Inc. trades at 61.4×. Ringcentral, Inc. has the higher net margin (4.27% vs −42.1%) and the higher return on invested capital (27.2% vs −25.3%). Across the 16 metrics below, Ringcentral, Inc. leads on 14 and Navan, Inc. on 2.

Valuation

Metric NAVN RNG Software Application median
P/E n/m 61.45 24.69
P/S 7.31 2.58 2.74
P/B 4.59 n/m 2.83
Price to free cash flow 213.08 11.61 17.55
EV/EBITDA n/m 13.59 14.66
EV/Sales 6.35 2.97 2.65
Earnings yield (21.50%) 1.63% 0.00%
Free cash flow yield 0.47% 8.61% 1.87%

Profitability

Metric NAVN RNG Software Application median
Gross margin 72.55% 71.83% 67.03%
Operating margin (25.72%) 6.72% 0.00%
Net margin (42.11%) 4.27% 0.00%
Free cash flow margin 3.43% 22.31% 5.01%
Return on equity (540.18%) (20.10%) 0.00%
Return on assets (38.41%) 7.38% 0.00%
Return on invested capital (25.34%) 27.20% 0.00%

Growth

Metric NAVN RNG Software Application median
Revenue growth (TTM) — 5.22% 12.48%
EPS growth (last fiscal year) (1.76%) 176.19% 32.26%
Revenue growth, 5-year CAGR — 16.27% 14.21%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric NAVN RNG Software Application median
Debt to equity 0.09 (1.84) 0.02
Current ratio 4.38 1.11 1.52
Net debt to EBITDA 5.39 2.19 0.06

Dividend

Metric NAVN RNG Software Application median
Dividend yield — 0.35% 0.86%
Payout ratio — 0.22 0.29

Size

Metric NAVN RNG Software Application median
Market cap 6.02b 6.54b 379.49m

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