Alight, Inc. (ALIT) vs Cerence Inc. (CRNC)

Alight, Inc. and Cerence Inc. are both Software Application companies. Alight, Inc. and Cerence Inc. are of similar size ($363.2M and $345.6M). Cerence Inc. grew revenue faster over the last twelve months: 25.8% against −3.98%. Cerence Inc. has the higher net margin (−4.97% vs −46.0%) and the higher return on invested capital (7.95% vs −21.6%). Across the 20 metrics below, Cerence Inc. leads on 12 and Alight, Inc. on 8.

Valuation

Metric ALIT CRNC Software Application median
P/E n/m n/m 26.44
P/S 0.15 1.19 2.90
P/B 0.35 2.21 2.60
Price to free cash flow 1.64 4.67 17.04
EV/EBITDA 5.39 12.83 15.48
EV/Sales 0.86 1.53 3.00
Earnings yield (300.39%) (4.43%) 0.20%
Free cash flow yield 60.92% 21.43% 1.96%

Profitability

Metric ALIT CRNC Software Application median
Gross margin 30.62% 78.69% 67.34%
Operating margin (39.72%) 8.72% 0.00%
Net margin (46.04%) (4.97%) 0.00%
Free cash flow margin 9.42% 25.41% 5.77%
Return on equity (67.81%) (9.56%) 0.00%
Return on assets (20.80%) (2.45%) 0.00%
Return on invested capital (21.62%) 7.95% 0.00%

Growth

Metric ALIT CRNC Software Application median
Revenue growth (TTM) (3.98%) 25.84% 12.12%
EPS growth (last fiscal year) (1,924.14%) 96.95% 32.44%
Revenue growth, 5-year CAGR (3.68%) (5.32%) 14.34%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALIT CRNC Software Application median
Debt to equity 2.03 1.04 0.04
Current ratio 1.42 2.08 1.53
Net debt to EBITDA 3.35 13.59 0.09

Dividend

Metric ALIT CRNC Software Application median
Dividend yield — — 1.07%
Payout ratio — — 0.28

Size

Metric ALIT CRNC Software Application median
Market cap 345.63m 363.20m 383.88m

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