ComparisonLast week on BNN, when asked about KXS, Jason Del vicario suggested that the caller look at MANH in the US instead. If you could only buy one, which would you buy? KXS recently put together a very strong Q3 displaying impressive revenue growth and plenty of recurring revenue. Guidance calls for an Adjusted EBITDA margin between 15% to 18%, SaaS growth of 24% to 25%, and total revenue of $425M to $435M. KXS also announced a buyback plan to purchase up to 5% of its shares and has a strong balance sheet. EPS growth outlook is very strong for 2024 (+29%) and 2025 (+52%). KXS has a forward price-to-earnings 60.4x.
MANH is a bit more expensive at 63x forward price-to-earnings. Revenues have increased by 20% in the last-twelve-months and margins have also improved over this time. Revenue is expected to increase just above +10% in each of the next two years. EPS is expected to grow by +4% next year and +17% in 2025. Balance sheet is strong with $247.6M in cash and $22.1M in total debt. When comparing the two, MANH is the bigger company with a market cap at $13.69B vs KXS at $4.29B, and this makes MANH a bit less risky. Both are great options, but we like KXS more here due to the cheaper valuation and better growth outlook. (5iResearch)