Paradigm AI, Inc. (PAAI) vs Zedge, Inc. (ZDGE)

Paradigm AI, Inc. and Zedge, Inc. are both Internet Content & Information companies. Paradigm AI, Inc. and Zedge, Inc. are of similar size ($43.0M and $42.5M). Zedge, Inc. has negative trailing earnings, so its P/E is not meaningful; Paradigm AI, Inc. trades at 4.6×. Zedge, Inc. grew revenue faster over the last twelve months: 6.14% against −31.4%. Paradigm AI, Inc. has the higher net margin (9.31% vs −3.62%) and the higher return on invested capital (15.1% vs −20.8%). Across the 19 metrics below, Paradigm AI, Inc. leads on 12 and Zedge, Inc. on 7.

Valuation

Metric PAAI ZDGE Internet Content & Information median
P/E 4.62 n/m 11.54
P/S 0.41 1.13 0.86
P/B n/m 1.44 1.20
Price to free cash flow 2.04 11.40 9.63
EV/EBITDA 8.27 4.80 8.68
EV/Sales 2.28 0.56 1.18
Earnings yield 21.66% (3.31%) (2.42%)
Free cash flow yield 49.12% 8.77% 2.27%

Profitability

Metric PAAI ZDGE Internet Content & Information median
Gross margin 42.74% 93.15% 66.84%
Operating margin 18.88% (5.17%) (3.41%)
Net margin 9.31% (3.62%) (3.02%)
Free cash flow margin 19.95% 9.91% 1.75%
Return on equity (75.29%) (4.26%) 0.00%
Return on assets 8.01% (3.14%) (0.36%)
Return on invested capital 15.05% (20.81%) 0.00%

Growth

Metric PAAI ZDGE Internet Content & Information median
Revenue growth (TTM) (31.39%) 6.14% 2.65%
EPS growth (last fiscal year) 191.93% 73.85% 34.45%
Revenue growth, 5-year CAGR 1.04% 25.43% 9.73%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PAAI ZDGE Internet Content & Information median
Debt to equity (12.93) 0.00 0.01
Current ratio 2.37 3.21 1.82
Net debt to EBITDA 1.75 16.67 (0.48)

Dividend

Metric PAAI ZDGE Internet Content & Information median
Dividend yield — 2.65% 1.07%
Payout ratio — — 0.28

Size

Metric PAAI ZDGE Internet Content & Information median
Market cap 42.47m 42.98m 318.52m

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