Dave Inc. (DAVE) vs Freshworks Inc. (FRSH)

Dave Inc. and Freshworks Inc. are both Software Application companies. Dave Inc. and Freshworks Inc. are of similar size ($3.5B and $3.3B). Freshworks Inc. trades at the lower P/E: 17.2× against 18.8×. Dave Inc. grew revenue faster over the last twelve months: 40.6% against 15.2%. Dave Inc. has the higher net margin (28.1% vs 22.3%) and the higher return on invested capital (40.2% vs 19.0%). Across the 20 metrics below, Dave Inc. leads on 12 and Freshworks Inc. on 8.

Valuation

Metric DAVE FRSH Software Application median
P/E 18.80 17.17 25.90
P/S 5.12 3.56 3.04
P/B 12.91 3.64 2.60
Price to free cash flow 11.15 14.09 17.17
EV/EBITDA 15.31 20.18 15.48
EV/Sales 5.14 2.81 2.89
Earnings yield 5.32% 5.83% 0.00%
Free cash flow yield 8.97% 7.10% 1.98%

Profitability

Metric DAVE FRSH Software Application median
Gross margin 100.00% 85.13% 66.89%
Operating margin 32.48% 7.06% 0.00%
Net margin 28.14% 22.28% 0.00%
Free cash flow margin 45.91% 25.28% 5.77%
Return on equity 68.79% 23.58% 0.00%
Return on assets 36.75% 14.51% 0.00%
Return on invested capital 40.20% 18.99% 0.00%

Growth

Metric DAVE FRSH Software Application median
Revenue growth (TTM) 40.57% 15.24% 12.27%
EPS growth (last fiscal year) 222.91% 296.88% 32.11%
Revenue growth, 5-year CAGR — 27.43% 14.34%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DAVE FRSH Software Application median
Debt to equity 0.27 0.00 0.02
Current ratio 4.22 1.77 1.53
Net debt to EBITDA (0.24) (13.14) 0.09

Dividend

Metric DAVE FRSH Software Application median
Dividend yield — — 1.10%
Payout ratio — — 0.28

Size

Metric DAVE FRSH Software Application median
Market cap 3.51b 3.33b 487.58m

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