BlackLine (BL) vs Wealthfront Corporation (WLTH)

BlackLine and Wealthfront Corporation are both Software Application companies. BlackLine and Wealthfront Corporation are of similar size ($1.6B and $1.6B). Wealthfront Corporation has negative trailing earnings, so its P/E is not meaningful; BlackLine trades at 71.1×. BlackLine has the higher net margin (4.75% vs −19.4%) and the higher return on invested capital (4.32% vs −59.5%). Across the 17 metrics below, BlackLine leads on 11 and Wealthfront Corporation on 6.

Valuation

Metric BL WLTH Software Application median
P/E 71.08 n/m 24.79
P/S 2.24 4.11 2.67
P/B 5.18 2.47 3.01
Price to free cash flow 10.99 10.68 16.59
EV/EBITDA 21.31 n/m 14.40
EV/Sales 2.44 2.87 2.62
Earnings yield 1.41% (20.11%) 0.00%
Free cash flow yield 9.10% 9.36% 1.91%

Profitability

Metric BL WLTH Software Application median
Gross margin 75.56% 89.11% 67.03%
Operating margin 4.32% (40.82%) 0.00%
Net margin 4.75% (19.42%) 0.00%
Free cash flow margin 20.36% 38.48% 4.32%
Return on equity 9.53% 0.00% 0.00%
Return on assets 2.13% (8.10%) 0.00%
Return on invested capital 4.32% (59.47%) 0.00%

Growth

Metric BL WLTH Software Application median
Revenue growth (TTM) 8.62% — 12.40%
EPS growth (last fiscal year) (82.91%) (154.20%) —
Revenue growth, 5-year CAGR 14.77% — 13.72%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric BL WLTH Software Application median
Debt to equity 2.12 0.01 0.02
Current ratio 1.72 1.43 1.55
Net debt to EBITDA (1.49) 4.35 0.06

Dividend

Metric BL WLTH Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 — 0.00

Size

Metric BL WLTH Software Application median
Market cap 1.62b 1.60b 396.11m

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