Hub24 trades at 21.83x sales versus a 13.32x five-year average while Zip sits at 3.98x against a 5.81x norm. Hub24's revenue has grown three years running.
Alpha Score of 57 reflects moderate overall profile with strong momentum, poor value, strong quality. Based on 3 of 4 signals – score is capped at 90 until remaining data ingests.
Hub24 and Zip Co sit at opposite ends of their own price-to-sales histories. Hub24's shares trade at 21.83x revenue, about 64% above the 13.32x average of the past five years, while Zip trades at 3.98x against a 5.81x norm, roughly a third lower. Sales multiples are the usual first pass at pricing growth companies, and Rask measures each name against its own five-year record because the two are not direct competitors.
Rask Media, the Australian investing research service, says Hub24 (ASX: HUB) is a leading player in wealth-management software. Its main products are the HUB24 platform and Class for self-managed super funds. The platform links financial advisers and their clients to managed funds and other investment products; Class handles portfolios and compliance for super funds. A third product, myprosperity, targets accountants and advisers looking to lift client service.
Hub24 competes on service quality. In 2024 the firm won Overall Best Platform in the Adviser Ratings Financial Advice Landscape Report and ranked first for overall satisfaction and brand reputation in the Wealth Insights Platform Service Level Report. Rask cites the two rankings as evidence of that service advantage.
A price-to-sales multiple above its own five-year average has two possible causes: the share price rose faster than revenue, or revenue fell. Hub24's revenue has grown in each of the past three years, Rask says. The higher multiple comes from the share price. Context matters, Rask adds; the ratio is one technique, not the whole answer.
Zip Co (ASX: ZIP), founded in 2013, runs a buy-now-pay-later service popular with retail consumers. Customers take purchases immediately and repay over several interest-free instalments. Like most BNPL lenders, Zip earns transaction fees from merchants and late fees from customers who miss payments.
Zip's shares trade at 3.98x price-to-sales, roughly a third below the 5.81x average of the past five years. The same math runs in reverse: the share price has fallen, or revenue has risen. Rask says the discount is a starting point, not a recommendation to buy. A below-average multiple does not by itself make Zip a bargain.
Rask is explicit about the limit of the exercise. A sales ratio is a rough starting point, not a standalone valuation. Discounted cash flow models value projected future cash; dividend discount models value expected payouts. Rask's analysts say a full read on Hub24 or Zip means running the sales multiple alongside one of those models.
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