NetScout Systems, Inc. (NTCT) vs PagSeguro Digital Ltd. (PAGS)

NetScout Systems, Inc. and PagSeguro Digital Ltd. are both Software Infrastructure companies. NetScout Systems, Inc. and PagSeguro Digital Ltd. are of similar size ($3.1B and $2.8B). PagSeguro Digital Ltd. trades at the lower P/E: 7.7× against 22.8×. PagSeguro Digital Ltd. grew revenue faster over the last twelve months: 12.3% against 5.79%. NetScout Systems, Inc. has the higher net margin (13.7% vs 10.5%) and the lower return on invested capital (7.91% vs 32.6%). Across the 22 metrics below, PagSeguro Digital Ltd. leads on 13 and NetScout Systems, Inc. on 9.

Valuation

Metric NTCT PAGS Software Infrastructure median
P/E 22.80 7.69 28.38
P/S 3.10 0.78 2.98
P/B 1.64 1.02 2.93
Price to free cash flow 10.65 4.26 16.28
EV/EBITDA 12.02 1.60 13.92
EV/Sales 2.55 0.79 2.90
Earnings yield 4.39% 13.00% 0.14%
Free cash flow yield 9.39% 23.48% 1.24%

Profitability

Metric NTCT PAGS Software Infrastructure median
Gross margin 79.84% 53.30% 61.00%
Operating margin 14.82% 40.07% 0.00%
Net margin 13.71% 10.47% 0.00%
Free cash flow margin 29.22% 18.36% 1.67%
Return on equity 7.54% 14.69% 0.60%
Return on assets 5.42% 2.96% 0.00%
Return on invested capital 7.91% 32.55% 0.00%

Growth

Metric NTCT PAGS Software Infrastructure median
Revenue growth (TTM) 5.79% 12.27% 13.41%
EPS growth (last fiscal year) 125.39% 12.39% 27.10%
Revenue growth, 5-year CAGR 0.67% 22.56% 15.57%
Net income growth, 5-year CAGR 37.62% 8.65% 0.00%

Health

Metric NTCT PAGS Software Infrastructure median
Debt to equity 0.00 0.10 0.05
Current ratio 1.83 1.55 1.55
Net debt to EBITDA (4.02) 0.00 0.08

Dividend

Metric NTCT PAGS Software Infrastructure median
Dividend yield — 4.91% 1.20%
Payout ratio — 0.38 0.29

Size

Metric NTCT PAGS Software Infrastructure median
Market cap 2.82b 3.09b 752.37m

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