Netskope Inc. (NTSK) vs WEX Inc. (WEX)

Netskope Inc. and WEX Inc. are both Software Infrastructure companies. Netskope Inc. is the larger, with a market value of $7.6B against $6.3B — 1.2× the size. Netskope Inc. has negative trailing earnings, so its P/E is not meaningful; WEX Inc. trades at 17.5×. WEX Inc. has the higher net margin (12.6% vs −91.8%) and the higher return on invested capital (0.00% vs 0.00%). Across the 15 metrics below, WEX Inc. leads on 12 and Netskope Inc. on 3.

Valuation

Metric NTSK WEX Software Infrastructure median
P/E n/m 17.53 28.02
P/S 8.92 2.22 3.07
P/B 45.65 4.60 3.36
Price to free cash flow n/m 123.97 17.12
EV/EBITDA n/m 3.80 14.91
EV/Sales 8.46 1.42 3.03
Earnings yield (14.43%) 5.70% 0.13%
Free cash flow yield (1.04%) 0.81% 1.15%

Profitability

Metric NTSK WEX Software Infrastructure median
Gross margin 69.92% 59.61% 61.23%
Operating margin (94.66%) 25.47% 0.00%
Net margin (91.84%) 12.56% 0.00%
Free cash flow margin (9.31%) 1.79% 1.67%
Return on equity 106.88% 30.19% 0.59%
Return on assets (86.11%) 2.25% 0.00%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric NTSK WEX Software Infrastructure median
Revenue growth (TTM) — 7.46% 13.41%
EPS growth (last fiscal year) 12.64% 12.93% —
Revenue growth, 5-year CAGR — 11.27% 15.81%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric NTSK WEX Software Infrastructure median
Debt to equity 4.45 2.62 0.06
Current ratio 2.01 1.04 1.55
Net debt to EBITDA 0.79 (2.49) 0.08

Dividend

Metric NTSK WEX Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio — 0.00 0.00

Size

Metric NTSK WEX Software Infrastructure median
Market cap 7.60b 6.32b 835.96m

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