Ribbon Communications Inc. (RBBN) vs Silvaco Group, Inc. (SVCO)

Ribbon Communications Inc. and Silvaco Group, Inc. are both Software Application companies. Ribbon Communications Inc. and Silvaco Group, Inc. are of similar size ($247.3M and $228.1M). Silvaco Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Ribbon Communications Inc. trades at 12.3×. Silvaco Group, Inc. grew revenue faster over the last twelve months: 11.9% against −7.78%. Ribbon Communications Inc. has the higher net margin (2.32% vs −30.5%) and the higher return on invested capital (−2.63% vs −18.5%). Across the 17 metrics below, Ribbon Communications Inc. leads on 11 and Silvaco Group, Inc. on 6.

Valuation

Metric RBBN SVCO Software Application median
P/E 12.29 n/m 26.44
P/S 0.30 3.38 2.90
P/B 0.62 2.89 2.60
Price to free cash flow n/m n/m 17.04
EV/EBITDA 16.82 n/m 15.48
EV/Sales 0.67 3.24 3.00
Earnings yield 8.13% (9.67%) 0.20%
Free cash flow yield (12.38%) (11.46%) 1.96%

Profitability

Metric RBBN SVCO Software Application median
Gross margin 48.27% 84.72% 67.34%
Operating margin (3.62%) (29.56%) 0.00%
Net margin 2.32% (30.45%) 0.00%
Free cash flow margin (3.70%) (38.74%) 5.77%
Return on equity 4.96% (26.52%) 0.00%
Return on assets 1.65% (16.91%) 0.00%
Return on invested capital (2.63%) (18.50%) 0.00%

Growth

Metric RBBN SVCO Software Application median
Revenue growth (TTM) (7.78%) 11.87% 12.12%
EPS growth (last fiscal year) 170.97% 9.15% 32.44%
Revenue growth, 5-year CAGR 0.02% — 14.34%
Net income growth, 5-year CAGR (14.86%) — 0.00%

Health

Metric RBBN SVCO Software Application median
Debt to equity 0.88 0.12 0.04
Current ratio 1.32 2.09 1.53
Net debt to EBITDA 3.89 0.43 0.09

Dividend

Metric RBBN SVCO Software Application median
Dividend yield — — 1.07%
Payout ratio — — 0.28

Size

Metric RBBN SVCO Software Application median
Market cap 247.26m 228.06m 383.88m

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