Radware Ltd. (RDWR) vs Rapid7, Inc. (RPD)

Radware Ltd. and Rapid7, Inc. are both Software Infrastructure companies. Radware Ltd. is the larger, with a market value of $1.2B against $881.6M — 1.3× the size. Rapid7, Inc. trades at the lower P/E: 40.7× against 69.6×. Radware Ltd. grew revenue faster over the last twelve months: 10.1% against 0.07%. Radware Ltd. has the higher net margin (5.33% vs 2.35%) and the higher return on invested capital (5.22% vs 0.00%). Across the 21 metrics below, Radware Ltd. leads on 12 and Rapid7, Inc. on 9.

Valuation

Metric RDWR RPD Software Infrastructure median
P/E 69.64 40.68 28.38
P/S 3.56 0.99 2.98
P/B 3.15 4.30 2.93
Price to free cash flow n/m 6.58 16.28
EV/EBITDA 42.20 7.40 13.92
EV/Sales 2.78 0.52 2.90
Earnings yield 1.44% 2.46% 0.14%
Free cash flow yield (2.43%) 15.20% 1.24%

Profitability

Metric RDWR RPD Software Infrastructure median
Gross margin 80.55% 69.30% 61.00%
Operating margin 2.91% 1.24% 0.00%
Net margin 5.33% 2.35% 0.00%
Free cash flow margin 10.22% 15.01% 1.67%
Return on equity 4.59% 14.03% 0.60%
Return on assets 2.58% 1.19% 0.00%
Return on invested capital 5.22% 0.00% 0.00%

Growth

Metric RDWR RPD Software Infrastructure median
Revenue growth (TTM) 10.10% 0.07% 13.41%
EPS growth (last fiscal year) 221.43% (10.00%) 27.10%
Revenue growth, 5-year CAGR 3.84% 15.88% 15.57%
Net income growth, 5-year CAGR 16.02% 0.00% 0.00%

Health

Metric RDWR RPD Software Infrastructure median
Debt to equity 0.00 1.50 0.05
Current ratio 1.63 0.80 1.55
Net debt to EBITDA (11.14) 6.82 0.08

Dividend

Metric RDWR RPD Software Infrastructure median
Dividend yield — — 1.20%
Payout ratio — — 0.29

Size

Metric RDWR RPD Software Infrastructure median
Market cap 1.19b 881.60m 752.37m

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