Rapid7, Inc. (RPD) vs Sabre Corporation (SABR)

Rapid7, Inc. and Sabre Corporation are both Software Infrastructure companies. Rapid7, Inc. and Sabre Corporation are of similar size ($908.1M and $866.1M). Sabre Corporation trades at the lower P/E: 1.2× against 37.5×. Sabre Corporation grew revenue faster over the last twelve months: 7.45% against 0.07%. Sabre Corporation has the higher net margin (25.1% vs 2.35%) and the higher return on invested capital (7.89% vs 0.00%). Across the 19 metrics below, Sabre Corporation leads on 11 and Rapid7, Inc. on 8.

Valuation

Metric RPD SABR Software Infrastructure median
P/E 37.48 1.20 28.02
P/S 0.91 0.31 3.07
P/B 3.96 n/m 3.36
Price to free cash flow 6.06 n/m 17.12
EV/EBITDA 6.43 8.79 14.91
EV/Sales 0.45 1.57 3.03
Earnings yield 2.67% 83.49% 0.13%
Free cash flow yield 16.50% (1.88%) 1.15%

Profitability

Metric RPD SABR Software Infrastructure median
Gross margin 69.30% 31.31% 61.23%
Operating margin 1.24% 11.34% 0.00%
Net margin 2.35% 25.14% 0.00%
Free cash flow margin 15.01% (0.57%) 1.67%
Return on equity 14.03% (50.19%) 0.59%
Return on assets 1.19% 16.32% 0.00%
Return on invested capital 0.00% 7.89% 0.00%

Growth

Metric RPD SABR Software Infrastructure median
Revenue growth (TTM) 0.07% 7.45% 13.41%
EPS growth (last fiscal year) (10.00%) 283.56% —
Revenue growth, 5-year CAGR 15.88% 15.74% 15.81%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RPD SABR Software Infrastructure median
Debt to equity 1.50 (4.09) 0.06
Current ratio 0.80 1.02 1.55
Net debt to EBITDA 6.82 7.34 0.08

Dividend

Metric RPD SABR Software Infrastructure median
Dividend yield — 0.48% 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric RPD SABR Software Infrastructure median
Market cap 866.10m 908.06m 835.96m

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