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 63.8×. Red Violet, Inc. has the higher net margin (16.5% vs −199.6%) and the higher return on invested capital (18.0% 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 63.79 n/m 25.41
P/S 10.59 11.32 2.73
P/B 9.40 1.42 2.57
Price to free cash flow 49.50 n/m 17.58
EV/EBITDA 34.76 n/m 15.36
EV/Sales 10.11 5.33 2.59
Earnings yield 1.57% (18.38%) 0.00%
Free cash flow yield 2.02% (38.57%) 2.24%

Profitability

Metric RDVT WRD Software Application median
Gross margin 84.70% 32.86% 67.03%
Operating margin 17.89% (218.36%) 0.00%
Net margin 16.54% (199.55%) 0.00%
Free cash flow margin 21.40% (436.85%) 5.01%
Return on equity 15.76% (92.25%) 0.00%
Return on assets 14.54% (22.14%) 0.00%
Return on invested capital 17.96% (68.91%) 0.00%

Growth

Metric RDVT WRD Software Application median
Revenue growth (TTM) 20.18% — 12.48%
EPS growth (last fiscal year) 82.00% 77.78% 32.26%
Revenue growth, 5-year CAGR 21.15% — 14.21%
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 10.88 5.36 1.52
Net debt to EBITDA (1.83) 4.03 0.08

Dividend

Metric RDVT WRD Software Application median
Dividend yield 0.00% — 0.95%
Payout ratio 0.00 — 0.29

Size

Metric RDVT WRD Software Application median
Market cap 1.24b 1.32b 357.77m

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