Cerence Inc. (CRNC) vs Yuanbao Inc. - Sponsored ADR (YB)

Cerence Inc. and Yuanbao Inc. - Sponsored ADR are both Software Application companies. Cerence Inc. and Yuanbao Inc. - Sponsored ADR are of similar size ($392.7M and $358.7M). Cerence Inc. has negative trailing earnings, so its P/E is not meaningful; Yuanbao Inc. - Sponsored ADR trades at 2.5×. Yuanbao Inc. - Sponsored ADR has the higher net margin (29.9% vs −4.97%) and the lower return on invested capital (0.00% vs 7.95%). Across the 16 metrics below, Yuanbao Inc. - Sponsored ADR leads on 12 and Cerence Inc. on 4.

Valuation

Metric CRNC YB Software Application median
P/E n/m 2.53 24.79
P/S 1.16 0.77 2.67
P/B 2.16 0.99 3.01
Price to free cash flow 4.57 n/m 16.59
EV/EBITDA 12.63 n/m 14.40
EV/Sales 1.50 (0.29) 2.62
Earnings yield (4.53%) 39.53% 0.00%
Free cash flow yield 21.89% 0.00% 1.91%

Profitability

Metric CRNC YB Software Application median
Gross margin 78.69% 95.46% 67.03%
Operating margin 8.72% 32.49% 0.00%
Net margin (4.97%) 29.87% 0.00%
Free cash flow margin 25.41% 0.00% 4.32%
Return on equity (9.56%) 46.76% 0.00%
Return on assets (2.45%) 30.20% 0.00%
Return on invested capital 7.95% 0.00% 0.00%

Growth

Metric CRNC YB Software Application median
Revenue growth (TTM) 25.84% — 12.40%
EPS growth (last fiscal year) 96.95% 47.17% —
Revenue growth, 5-year CAGR (5.32%) — 13.72%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric CRNC YB Software Application median
Debt to equity 1.04 0.00 0.02
Current ratio 2.08 2.91 1.55
Net debt to EBITDA 13.59 (2.97) 0.06

Dividend

Metric CRNC YB Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 — 0.00

Size

Metric CRNC YB Software Application median
Market cap 358.68m 392.65m 396.11m

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