Rimini Street, Inc. (RMNI) vs Sprout Social, Inc. (SPT)

Rimini Street, Inc. and Sprout Social, Inc. are both Software Application companies. Sprout Social, Inc. is the larger, with a market value of $654.1M against $482.0M — 1.4× the size. Sprout Social, Inc. has negative trailing earnings, so its P/E is not meaningful; Rimini Street, Inc. trades at 41.9×. Sprout Social, Inc. grew revenue faster over the last twelve months: 10.7% against 2.92%. Rimini Street, Inc. has the higher net margin (2.51% vs −5.42%) and the higher return on invested capital (0.00% vs −12.1%). Across the 19 metrics below, Rimini Street, Inc. leads on 11 and Sprout Social, Inc. on 8.

Valuation

Metric RMNI SPT Software Application median
P/E 41.90 n/m 26.44
P/S 1.10 1.34 2.90
P/B n/m 3.18 2.60
Price to free cash flow 21.66 15.59 17.04
EV/EBITDA 12.06 81.75 15.48
EV/Sales 0.99 1.19 3.00
Earnings yield 2.39% (4.06%) 0.20%
Free cash flow yield 4.62% 6.41% 1.96%

Profitability

Metric RMNI SPT Software Application median
Gross margin 60.45% 77.16% 67.34%
Operating margin 5.93% (5.34%) 0.00%
Net margin 2.51% (5.42%) 0.00%
Free cash flow margin 5.10% 8.59% 5.77%
Return on equity (56.72%) (13.27%) 0.00%
Return on assets 3.11% (5.46%) 0.00%
Return on invested capital 0.00% (12.08%) 0.00%

Growth

Metric RMNI SPT Software Application median
Revenue growth (TTM) 2.92% 10.73% 12.12%
EPS growth (last fiscal year) 197.50% 32.11% 32.44%
Revenue growth, 5-year CAGR 5.22% 28.04% 14.34%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RMNI SPT Software Application median
Debt to equity (3.62) 0.16 0.04
Current ratio 0.82 0.91 1.53
Net debt to EBITDA (0.76) 8.10 0.09

Dividend

Metric RMNI SPT Software Application median
Dividend yield — — 1.07%
Payout ratio — — 0.28

Size

Metric RMNI SPT Software Application median
Market cap 482.02m 654.14m 383.88m

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