NextNav Inc. (NN) vs PagSeguro Digital Ltd. (PAGS)

NextNav Inc. and PagSeguro Digital Ltd. are both Software Infrastructure companies. NextNav Inc. and PagSeguro Digital Ltd. are of similar size ($2.5B and $2.4B). NextNav Inc. has negative trailing earnings, so its P/E is not meaningful; PagSeguro Digital Ltd. trades at 6.3×. PagSeguro Digital Ltd. grew revenue faster over the last twelve months: 12.3% against −36.5%. PagSeguro Digital Ltd. has the higher net margin (10.5% vs −2,812.6%) and the higher return on invested capital (32.6% vs −44.7%). Across the 19 metrics below, PagSeguro Digital Ltd. leads on 15 and NextNav Inc. on 4.

Valuation

Metric NN PAGS Software Infrastructure median
P/E n/m 6.33 28.02
P/S 512.10 0.64 3.07
P/B 6.09 0.84 3.36
Price to free cash flow n/m 3.50 17.12
EV/EBITDA n/m 1.32 14.91
EV/Sales 521.74 0.65 3.03
Earnings yield (5.61%) 15.80% 0.13%
Free cash flow yield (2.63%) 28.53% 1.15%

Profitability

Metric NN PAGS Software Infrastructure median
Gross margin (104.90%) 53.30% 61.23%
Operating margin (1,900.43%) 40.07% 0.00%
Net margin (2,812.55%) 10.47% 0.00%
Free cash flow margin (1,348.00%) 18.36% 1.67%
Return on equity (77.87%) 14.69% 0.59%
Return on assets (34.64%) 2.96% 0.00%
Return on invested capital (44.71%) 32.55% 0.00%

Growth

Metric NN PAGS Software Infrastructure median
Revenue growth (TTM) (36.46%) 12.27% 13.41%
EPS growth (last fiscal year) (69.05%) 12.39% —
Revenue growth, 5-year CAGR 51.71% 22.56% 15.81%
Net income growth, 5-year CAGR 0.00% 8.65% 0.00%

Health

Metric NN PAGS Software Infrastructure median
Debt to equity 0.00 0.10 0.06
Current ratio 25.63 1.55 1.55
Net debt to EBITDA (2.30) 0.00 0.08

Dividend

Metric NN PAGS Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric NN PAGS Software Infrastructure median
Market cap 2.42b 2.51b 835.96m

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