TechTarget, Inc. (TTGT) vs VERRA MOBILITY CORP (VRRM)

TechTarget, Inc. and VERRA MOBILITY CORP are both Information Technology Services companies. VERRA MOBILITY CORP is the larger, with a market value of $506.1M against $271.3M — 1.9× the size. TechTarget, Inc. has negative trailing earnings, so its P/E is not meaningful; VERRA MOBILITY CORP trades at 12.0×. TechTarget, Inc. grew revenue faster over the last twelve months: 25.3% against 11.1%. VERRA MOBILITY CORP has the higher net margin (4.40% vs −36.9%) and the higher return on invested capital (7.10% vs −24.3%). Across the 19 metrics below, VERRA MOBILITY CORP leads on 14 and TechTarget, Inc. on 5.

Valuation

Metric TTGT VRRM Information Technology Services median
P/E n/m 12.00 14.63
P/S 0.57 0.49 1.13
P/B 0.55 2.20 2.10
Price to free cash flow n/m 5.08 10.11
EV/EBITDA 55.47 5.79 8.56
EV/Sales 1.58 1.46 1.20
Earnings yield (63.97%) 8.33% 4.56%
Free cash flow yield (5.03%) 19.69% 4.37%

Profitability

Metric TTGT VRRM Information Technology Services median
Gross margin 59.21% 55.50% 31.05%
Operating margin (46.52%) 13.59% 3.30%
Net margin (36.85%) 4.40% 2.09%
Free cash flow margin (2.87%) 9.62% 0.00%
Return on equity (30.42%) 15.38% 4.12%
Return on assets (18.34%) 2.67% 0.61%
Return on invested capital (24.27%) 7.10% 0.57%

Growth

Metric TTGT VRRM Information Technology Services median
Revenue growth (TTM) 25.33% 11.10% 7.12%
EPS growth (last fiscal year) (430.57%) 347.37% —
Revenue growth, 5-year CAGR 26.82% 19.99% 7.71%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric TTGT VRRM Information Technology Services median
Debt to equity 0.24 4.63 0.45
Current ratio 1.15 2.06 1.66
Net debt to EBITDA 6.19 2.70 0.44

Dividend

Metric TTGT VRRM Information Technology Services median
Dividend yield — — 1.21%
Payout ratio 0.00 0.00 0.00

Size

Metric TTGT VRRM Information Technology Services median
Market cap 271.25m 506.10m 1.36b

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