Adeia Inc. (ADEA) vs Vertex, Inc. (VERX)

Adeia Inc. and Vertex, Inc. are both Software Application companies. Adeia Inc. and Vertex, Inc. are of similar size ($2.4B and $2.2B). Adeia Inc. trades at the lower P/E: 18.1× against 389×. Adeia Inc. grew revenue faster over the last twelve months: 24.4% against 10.8%. Adeia Inc. has the higher net margin (26.1% vs 0.45%) and the higher return on invested capital (16.9% vs −2.39%). Across the 22 metrics below, Adeia Inc. leads on 16 and Vertex, Inc. on 6.

Valuation

Metric ADEA VERX Software Application median
P/E 18.07 388.66 25.41
P/S 4.78 2.74 2.73
P/B 4.72 8.95 2.57
Price to free cash flow 13.09 42.59 17.58
EV/EBITDA 9.55 22.48 15.36
EV/Sales 5.31 2.88 2.59
Earnings yield 5.53% 0.26% 0.00%
Free cash flow yield 7.64% 2.35% 2.24%

Profitability

Metric ADEA VERX Software Application median
Gross margin 100.00% 63.95% 67.03%
Operating margin 41.62% (1.69%) 0.00%
Net margin 26.05% 0.45% 0.00%
Free cash flow margin 36.52% 6.43% 5.01%
Return on equity 27.88% 1.46% 0.00%
Return on assets 11.70% 0.30% 0.00%
Return on invested capital 16.87% (2.39%) 0.00%

Growth

Metric ADEA VERX Software Application median
Revenue growth (TTM) 24.35% 10.83% 12.48%
EPS growth (last fiscal year) 73.68% 111.76% 32.26%
Revenue growth, 5-year CAGR (2.98%) 14.84% 14.21%
Net income growth, 5-year CAGR (5.42%) 0.00% 0.00%

Health

Metric ADEA VERX Software Application median
Debt to equity 0.81 1.40 0.02
Current ratio 3.25 0.87 1.52
Net debt to EBITDA 1.19 0.22 0.08

Dividend

Metric ADEA VERX Software Application median
Dividend yield 0.98% — 0.95%
Payout ratio 0.19 — 0.29

Size

Metric ADEA VERX Software Application median
Market cap 2.40b 2.22b 357.77m

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