ePlus inc. (PLUS) vs Vertex, Inc. (VERX)

ePlus inc. and Vertex, Inc. are both Software Application companies. ePlus inc. is the larger, with a market value of $2.5B against $2.2B — 1.1× the size. ePlus inc. trades at the lower P/E: 20.5× against 389×. ePlus inc. grew revenue faster over the last twelve months: 16.2% against 10.8%. ePlus inc. has the higher net margin (4.91% vs 0.45%) and the higher return on invested capital (16.3% vs −2.39%). Across the 22 metrics below, ePlus inc. leads on 16 and Vertex, Inc. on 6.

Valuation

Metric PLUS VERX Software Application median
P/E 20.47 388.66 25.41
P/S 1.00 2.74 2.73
P/B 2.28 8.95 2.57
Price to free cash flow 44.54 42.59 17.58
EV/EBITDA 10.64 22.48 15.36
EV/Sales 0.82 2.88 2.59
Earnings yield 4.89% 0.26% 0.00%
Free cash flow yield 2.24% 2.35% 2.24%

Profitability

Metric PLUS VERX Software Application median
Gross margin 25.06% 63.95% 67.03%
Operating margin 6.62% (1.69%) 0.00%
Net margin 4.91% 0.45% 0.00%
Free cash flow margin 2.24% 6.43% 5.01%
Return on equity 11.50% 1.46% 0.00%
Return on assets 6.56% 0.30% 0.00%
Return on invested capital 16.25% (2.39%) 0.00%

Growth

Metric PLUS VERX Software Application median
Revenue growth (TTM) 16.21% 10.83% 12.48%
EPS growth (last fiscal year) 24.20% 111.76% 32.26%
Revenue growth, 5-year CAGR 9.27% 14.84% 14.21%
Net income growth, 5-year CAGR 12.26% 0.00% 0.00%

Health

Metric PLUS VERX Software Application median
Debt to equity 0.00 1.40 0.02
Current ratio 2.13 0.87 1.52
Net debt to EBITDA (2.12) 0.22 0.08

Dividend

Metric PLUS VERX Software Application median
Dividend yield 1.10% — 0.95%
Payout ratio 0.23 — 0.29

Size

Metric PLUS VERX Software Application median
Market cap 2.48b 2.22b 357.77m

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