Valuation Comparison

Just thought of comparing with another similar company with Catapult today..

Nearmap commands a mkt cap of $407M now. Net profit for the half year has become more negative as they spend more to grow their ARR (they call it ACV), similar to Catapult's net profit being more negative as it spends to grow technology dominance. Their last reported ACV was $55M AUD, compared to Catapult's of $46M. They've achieved revenue of $24M in H1FY18, compared to Catapult of $32M. EBITDA for them is $1M, which is close to breakeven, very similar to Catapult's underlying EBITDA. Cash level is $20M, similar to Catapult of $18M. Nearmap is not without its competitors (and majors like Google Maps could possibly try to compete), and has to keep spending on imagery acquisition in order to keep their maps up to date. Similarly, Catapult is spending to improve its product offerings to prosumers and elites (tactical analytics through video integration with wearable). The churn rate for Nearmap is >10%, whereas Catapult is <10%..

So, my big question is..why is Catapult trading at a mere $220M? These are 2 similar companies operating in tech space and having recurring revenues and similar growth trajectory. I think Catapult is significantly undervalued if compared to the likes of Nearmap. Nearmap was hovering around 60cts for a long time, and has now gone to $1.04..time for Catapult to go back to $2.40 to have same mkt cap as Nearmap!!tH