Adeia Inc. (ADEA) vs Donnelley Financial Solutions (DFIN)

Adeia Inc. and Donnelley Financial Solutions are both Software Application companies. Adeia Inc. and Donnelley Financial Solutions are of similar size ($1.6B and $1.6B). Adeia Inc. trades at the lower P/E: 13.8× against 17.4×. Adeia Inc. grew revenue faster over the last twelve months: 22.1% against 4.85%. Adeia Inc. has the higher net margin (25.0% vs 12.4%) and the lower return on invested capital (15.1% vs 18.6%). Across the 22 metrics below, Adeia Inc. leads on 13 and Donnelley Financial Solutions on 9.

Valuation

Metric ADEA DFIN Software Application median
P/E 13.84 17.37 25.90
P/S 3.53 2.10 3.04
P/B 3.39 4.04 2.60
Price to free cash flow 10.24 9.24 17.17
EV/EBITDA 7.21 8.10 15.48
EV/Sales 4.07 2.23 2.89
Earnings yield 7.22% 5.76% 0.00%
Free cash flow yield 9.77% 10.82% 1.98%

Profitability

Metric ADEA DFIN Software Application median
Gross margin 100.00% 64.66% 66.89%
Operating margin 38.39% 19.23% 0.00%
Net margin 25.04% 12.37% 0.00%
Free cash flow margin 34.44% 22.73% 5.77%
Return on equity 25.90% 23.41% 0.00%
Return on assets 11.19% 12.14% 0.00%
Return on invested capital 15.12% 18.59% 0.00%

Growth

Metric ADEA DFIN Software Application median
Revenue growth (TTM) 22.06% 4.85% 12.27%
EPS growth (last fiscal year) 73.68% (62.42%) 32.11%
Revenue growth, 5-year CAGR (2.98%) (3.03%) 14.34%
Net income growth, 5-year CAGR (5.42%) 0.00% 0.00%

Health

Metric ADEA DFIN Software Application median
Debt to equity 0.79 0.31 0.02
Current ratio 3.64 1.06 1.53
Net debt to EBITDA 1.19 0.71 0.09

Dividend

Metric ADEA DFIN Software Application median
Dividend yield 1.35% — 1.10%
Payout ratio 0.20 — 0.28

Size

Metric ADEA DFIN Software Application median
Market cap 1.63b 1.64b 487.58m

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