Red Violet, Inc. (RDVT) vs WeRide Inc. (WRD)

Red Violet, Inc. and WeRide Inc. are both Software Application companies. Red Violet, Inc. and WeRide Inc. are of similar size ($1.3B and $1.2B). WeRide Inc. has negative trailing earnings, so its P/E is not meaningful; Red Violet, Inc. trades at 59.3×. Red Violet, Inc. has the higher net margin (17.0% vs −199.6%) and the higher return on invested capital (7.41% vs −68.9%). Across the 16 metrics below, Red Violet, Inc. leads on 14 and WeRide Inc. on 2.

Valuation

Metric RDVT WRD Software Application median
P/E 59.35 n/m 25.90
P/S 10.63 11.24 3.04
P/B 4.84 1.41 2.60
Price to free cash flow 48.48 n/m 17.17
EV/EBITDA 34.39 n/m 15.48
EV/Sales 9.99 5.25 2.89
Earnings yield 1.69% (18.52%) 0.00%
Free cash flow yield 2.06% (38.86%) 1.98%

Profitability

Metric RDVT WRD Software Application median
Gross margin 85.01% 32.86% 66.89%
Operating margin 18.23% (218.36%) 0.00%
Net margin 16.98% (199.55%) 0.00%
Free cash flow margin 21.92% (436.85%) 5.77%
Return on equity 10.69% (92.25%) 0.00%
Return on assets 10.06% (22.14%) 0.00%
Return on invested capital 7.41% (68.91%) 0.00%

Growth

Metric RDVT WRD Software Application median
Revenue growth (TTM) 19.98% — 12.27%
EPS growth (last fiscal year) 82.00% 77.78% 32.11%
Revenue growth, 5-year CAGR 21.15% — 14.34%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric RDVT WRD Software Application median
Debt to equity 0.00 0.09 0.02
Current ratio 16.21 5.36 1.53
Net debt to EBITDA (1.83) 4.03 0.09

Dividend

Metric RDVT WRD Software Application median
Dividend yield 0.00% — 1.10%
Payout ratio 0.00 — 0.28

Size

Metric RDVT WRD Software Application median
Market cap 1.16b 1.26b 487.58m

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