Pattern Group Inc. (PTRN) vs SPS Commerce, Inc. (SPSC)

Pattern Group Inc. and SPS Commerce, Inc. are both Software Application companies. Pattern Group Inc. and SPS Commerce, Inc. are of similar size ($3.2B and $3.0B). Pattern Group Inc. has negative trailing earnings, so its P/E is not meaningful; SPS Commerce, Inc. trades at 39.1×. SPS Commerce, Inc. has the higher net margin (10.1% vs −4.38%) and the lower return on invested capital (8.07% vs 8.54%). Across the 17 metrics below, SPS Commerce, Inc. leads on 12 and Pattern Group Inc. on 5.

Valuation

Metric PTRN SPSC Software Application median
P/E n/m 39.09 24.79
P/S 1.00 3.84 2.67
P/B 35.08 3.16 3.01
Price to free cash flow 28.37 14.95 16.59
EV/EBITDA 43.89 17.51 14.40
EV/Sales 0.88 3.62 2.62
Earnings yield (9.71%) 2.56% 0.00%
Free cash flow yield 3.52% 6.69% 1.91%

Profitability

Metric PTRN SPSC Software Application median
Gross margin 43.89% 69.82% 67.03%
Operating margin 1.36% 12.80% 0.00%
Net margin (4.38%) 10.10% 0.00%
Free cash flow margin 3.52% 25.72% 4.32%
Return on equity (137.69%) 8.26% 0.00%
Return on assets (24.61%) 6.94% 0.00%
Return on invested capital 8.54% 8.07% 0.00%

Growth

Metric PTRN SPSC Software Application median
Revenue growth (TTM) — 9.80% 12.40%
EPS growth (last fiscal year) (281.92%) 20.59% —
Revenue growth, 5-year CAGR — 19.17% 13.72%
Net income growth, 5-year CAGR — 15.41% 0.00%

Health

Metric PTRN SPSC Software Application median
Debt to equity 0.00 0.00 0.02
Current ratio 2.35 2.26 1.55
Net debt to EBITDA (6.85) (0.86) 0.06

Dividend

Metric PTRN SPSC Software Application median
Dividend yield — — 1.25%
Payout ratio — 0.00 0.00

Size

Metric PTRN SPSC Software Application median
Market cap 3.18b 3.00b 396.11m

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