BILL Holdings, Inc. (BILL) vs Freshworks Inc. (FRSH)

BILL Holdings, Inc. and Freshworks Inc. are both Software Application companies. BILL Holdings, Inc. is the larger, with a market value of $3.8B against $3.3B — 1.1× the size. BILL Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Freshworks Inc. trades at 19.3×. Freshworks Inc. grew revenue faster over the last twelve months: 15.6% against 13.0%. Freshworks Inc. has the higher net margin (20.5% vs −0.68%) and the higher return on invested capital (8.20% vs −1.34%). Across the 20 metrics below, Freshworks Inc. leads on 14 and BILL Holdings, Inc. on 6.

Valuation

Metric BILL FRSH Software Application median
P/E n/m 19.29 24.79
P/S 2.67 3.77 2.67
P/B 1.25 3.81 3.01
Price to free cash flow 12.47 15.45 16.59
EV/EBITDA 87.20 30.73 14.40
EV/Sales 2.61 3.04 2.62
Earnings yield (0.27%) 5.18% 0.00%
Free cash flow yield 8.02% 6.47% 1.91%

Profitability

Metric BILL FRSH Software Application median
Gross margin 80.93% 84.96% 67.03%
Operating margin (4.44%) 3.35% 0.00%
Net margin (0.68%) 20.49% 0.00%
Free cash flow margin 21.45% 24.41% 4.32%
Return on equity (0.30%) 19.70% 0.00%
Return on assets (0.11%) 12.47% 0.00%
Return on invested capital (1.34%) 8.20% 0.00%

Growth

Metric BILL FRSH Software Application median
Revenue growth (TTM) 13.03% 15.57% 12.40%
EPS growth (last fiscal year) (148.03%) 296.88% —
Revenue growth, 5-year CAGR 47.32% 27.43% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BILL FRSH Software Application median
Debt to equity 0.52 0.00 0.02
Current ratio 1.51 1.69 1.55
Net debt to EBITDA (2.05) (13.14) 0.06

Dividend

Metric BILL FRSH Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric BILL FRSH Software Application median
Market cap 3.83b 3.34b 396.11m

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