Ackroo vs Snipp Interactive Before I begin to compare the following 2 companies let me say that financials for Snipp Interactive are in $US whereas Ackroo is in $Cad. As of year end 2020, about 85% of Snipp revenues are derived from US customers. As of June 2021, 10% of Ackroo's clients are US customers while the rest are Canadian.
Ebitda = adjusted ebitda
M = ebitda margins
EV= Enterprise Value
2020. Revenue. Ebitda M
Ackroo ($Cad). $6,047,576. $1,638,587 27.1%
Snipp ($US) $8,692,274 $346,153 3.98%
2021 ttm Revenue Ebitda M
Ackroo ($cad). $5,874,727 $1,150,418. 19.6%
Snipp ($US) $9,903,613 $880,782 8.9%
Commentary : So far it looks as if Snipp is off to a better start than Ackroo; however, keep in mind that Ackroo customers faced a severe lockdown due to Covid. Ackroo has recently made an acquisition to further penetrate the US market which would give them further diversity. Ackroo has a much higher ebitda margin and a larger proportion of their revenue comes from recurring services. The enterprise value for Ackroo and Snipp is Cad $21,463,519.8 and US $26,414,407 respectively.
2021 ttm EV/sales EV/Ebitda
Ackroo 3.65. 18.65
Snipp 2.67 29.98
Ackroo is 36.7% more expensive on a EV to sales ratio but Snipp interactive is 60.7% more expensive on an EV to ebitda ratio. Keep in mind that the first ratio is more stable whereas the second ratio is more variable and volatile.
It is my opinion that Ackroo is the better buy. The majority of their revenue is predictable and they have demonstrated that they can deliver a higher ebitda margin than their competitors. I believe the penetration into the US market will be a BIG win for shareholders.