Sangoma Technologies Corporation (SANG) vs Tucows Inc. (TCX)

Sangoma Technologies Corporation and Tucows Inc. are both Software Infrastructure companies. Sangoma Technologies Corporation and Tucows Inc. are of similar size ($118.1M and $114.1M). Tucows Inc. grew revenue faster over the last twelve months: 4.22% against −10.8%. Sangoma Technologies Corporation has the higher net margin (−3.04% vs −21.2%) and the higher return on invested capital (−1.12% vs −7.59%). Across the 18 metrics below, Sangoma Technologies Corporation leads on 14 and Tucows Inc. on 4.

Valuation

Metric SANG TCX Software Infrastructure median
P/E n/m n/m 28.02
P/S 0.56 0.28 3.07
P/B 0.48 n/m 3.36
Price to free cash flow 4.62 n/m 17.12
EV/EBITDA 3.87 25.93 14.91
EV/Sales 0.57 1.40 3.03
Earnings yield (5.39%) (75.45%) 0.13%
Free cash flow yield 21.66% (4.92%) 1.15%

Profitability

Metric SANG TCX Software Infrastructure median
Gross margin 71.23% 24.90% 61.23%
Operating margin (2.12%) (7.18%) 0.00%
Net margin (3.04%) (21.20%) 0.00%
Free cash flow margin 12.13% (1.39%) 1.67%
Return on equity (2.56%) 51.87% 0.59%
Return on assets (1.90%) (11.38%) 0.00%
Return on invested capital (1.12%) (7.59%) 0.00%

Growth

Metric SANG TCX Software Infrastructure median
Revenue growth (TTM) (10.76%) 4.22% 13.41%
EPS growth (last fiscal year) 42.31% 33.30% —
Revenue growth, 5-year CAGR 20.08% 4.63% 15.81%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SANG TCX Software Infrastructure median
Debt to equity 0.07 (2.41) 0.06
Current ratio 0.90 0.57 1.55
Net debt to EBITDA 0.57 15.65 0.08

Dividend

Metric SANG TCX Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric SANG TCX Software Infrastructure median
Market cap 118.14m 114.06m 835.96m

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