Hi there,
I would not lump MDF Commerce with LSPD - they do operate in similar but different areas. LSPD is primarily a payment processor whereas MDF has three different segments including: Strategic Sourcing (Procurement), Unified Commerce (Supply Chain) and Marketplace. ALthough it does compete with certain aspects of its Unified Commerce segment, it doesn't in the other. Worth noting, it is sunsetting its Marketplace segment.
Through the first six months of fiscal 2021, the company is posting decent growth (mid teens) which is being fueled primarily by their Unified Commerce segment which includes their supply chain management platform. It isn't the only company in this area seeing significant growth as similar SaaS supply chain companies like Tecsys and Sylogist are seeing growth in this area as well. Their Strategic sourcing is up by mid-single digits while the market place segment decreased. Not all that surprising as it is sunsetting some operations here and rolling up the rest in Unified Commerce.
The company looks to be making some strategic acquisitions that will spur further growth and it does compete with a wide range of SaaS companies given their segments touch on very different business areas. The company does look pretty cheap compared to its competitors like LSPD, SHOP, TCS, PVT and the like, but it is also not growing nearly as fast. Analysts expect revenue growth in the low teens over the next couple of years. It is worth noting the MDF is going through a pretty big strategic shift and hasn't done well against estimates. In fact it missed in 5 of the past six quarters.
The company does seem to be doing the right things and I like the areas in which it operates. However, it is not on the same level as some of the others given it is still transitioning, as lower growth rates and has consistently missed expectations. If they can rectify the last two, then you might see the valuation gap close.
Mat