SPS Commerce, Inc. (SPSC) vs Vertex, Inc. (VERX)

SPS Commerce, Inc. and Vertex, Inc. are both Software Application companies. SPS Commerce, Inc. and Vertex, Inc. are of similar size ($2.9B and $2.9B). SPS Commerce, Inc. trades at the lower P/E: 36.4× against 511×. Vertex, Inc. grew revenue faster over the last twelve months: 10.4% against 6.92%. SPS Commerce, Inc. has the higher net margin (10.7% vs −5.83%) and the higher return on invested capital (8.97% vs −2.09%). Across the 22 metrics below, SPS Commerce, Inc. leads on 19 and Vertex, Inc. on 3.

Valuation

Metric SPSC VERX Software Application median
P/E 36.41 511.05 25.90
P/S 3.79 3.51 3.04
P/B 3.17 15.74 2.60
Price to free cash flow 14.61 68.40 17.17
EV/EBITDA 16.41 29.21 15.48
EV/Sales 3.56 3.65 2.89
Earnings yield 2.75% 0.20% 0.00%
Free cash flow yield 6.85% 1.46% 1.98%

Profitability

Metric SPSC VERX Software Application median
Gross margin 70.23% 64.61% 66.89%
Operating margin 13.79% (2.15%) 0.00%
Net margin 10.65% (5.83%) 0.00%
Free cash flow margin 25.97% 20.34% 5.77%
Return on equity 8.79% (21.19%) 0.00%
Return on assets 7.26% (3.94%) 0.00%
Return on invested capital 8.97% (2.09%) 0.00%

Growth

Metric SPSC VERX Software Application median
Revenue growth (TTM) 6.92% 10.44% 12.27%
EPS growth (last fiscal year) 20.59% 111.76% 32.11%
Revenue growth, 5-year CAGR 19.17% 14.84% 14.34%
Net income growth, 5-year CAGR 15.41% 0.00% 0.00%

Health

Metric SPSC VERX Software Application median
Debt to equity 0.00 1.88 0.02
Current ratio 2.25 0.75 1.53
Net debt to EBITDA (0.86) 0.22 0.09

Dividend

Metric SPSC VERX Software Application median
Dividend yield — — 1.10%
Payout ratio — — 0.28

Size

Metric SPSC VERX Software Application median
Market cap 2.93b 2.85b 487.58m

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