Research Solutions Inc. (RSSS) vs SoundThinking, Inc. (SSTI)

Research Solutions Inc. and SoundThinking, Inc. are both Software Application companies. Research Solutions Inc. and SoundThinking, Inc. are of similar size ($72.0M and $71.6M). SoundThinking, Inc. has negative trailing earnings, so its P/E is not meaningful; Research Solutions Inc. trades at 23.4×. Research Solutions Inc. grew revenue faster over the last twelve months: −1.53% against −5.72%. Research Solutions Inc. has the higher net margin (5.84% vs −16.9%) and the higher return on invested capital (27.8% vs −17.0%). Across the 17 metrics below, Research Solutions Inc. leads on 12 and SoundThinking, Inc. on 5.

Valuation

Metric RSSS SSTI Software Application median
P/E 23.44 n/m 24.79
P/S 1.39 0.75 2.67
P/B 3.24 1.13 3.01
Price to free cash flow 12.96 n/m 16.59
EV/EBITDA 11.28 n/m 14.40
EV/Sales 1.13 0.71 2.62
Earnings yield 4.27% (22.87%) 0.00%
Free cash flow yield 7.72% (1.47%) 1.91%

Profitability

Metric RSSS SSTI Software Application median
Gross margin 51.90% 50.07% 67.03%
Operating margin 7.43% (16.43%) 0.00%
Net margin 5.84% (16.92%) 0.00%
Free cash flow margin 10.84% (1.10%) 4.32%
Return on equity 16.30% (23.66%) 0.00%
Return on assets 6.15% (13.10%) 0.00%
Return on invested capital 27.77% (17.01%) 0.00%

Growth

Metric RSSS SSTI Software Application median
Revenue growth (TTM) (1.53%) (5.72%) 12.40%
EPS growth (last fiscal year) 125.00% (2.78%) —
Revenue growth, 5-year CAGR 8.75% 17.89% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RSSS SSTI Software Application median
Debt to equity 0.00 0.00 0.02
Current ratio 0.83 0.74 1.55
Net debt to EBITDA (2.61) (14.15) 0.06

Dividend

Metric RSSS SSTI Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric RSSS SSTI Software Application median
Market cap 71.58m 72.01m 396.11m

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