Donnelley Financial Solutions (DFIN) vs Wealthfront Corporation (WLTH)

Donnelley Financial Solutions and Wealthfront Corporation are both Software Application companies. Donnelley Financial Solutions and Wealthfront Corporation are of similar size ($1.7B and $1.6B). Wealthfront Corporation has negative trailing earnings, so its P/E is not meaningful; Donnelley Financial Solutions trades at 17.4×. Donnelley Financial Solutions has the higher net margin (12.4% vs −19.4%) and the higher return on invested capital (18.6% vs −59.5%). Across the 17 metrics below, Donnelley Financial Solutions leads on 12 and Wealthfront Corporation on 5.

Valuation

Metric DFIN WLTH Software Application median
P/E 17.37 n/m 25.90
P/S 2.10 4.30 3.04
P/B 4.04 2.58 2.60
Price to free cash flow 9.24 11.17 17.17
EV/EBITDA 8.10 n/m 15.48
EV/Sales 2.23 3.06 2.89
Earnings yield 5.76% (3.56%) 0.00%
Free cash flow yield 10.82% 8.96% 1.98%

Profitability

Metric DFIN WLTH Software Application median
Gross margin 64.66% 89.11% 66.89%
Operating margin 19.23% (40.82%) 0.00%
Net margin 12.37% (19.42%) 0.00%
Free cash flow margin 22.73% 38.48% 5.77%
Return on equity 23.41% 0.00% 0.00%
Return on assets 12.14% (8.10%) 0.00%
Return on invested capital 18.59% (59.47%) 0.00%

Growth

Metric DFIN WLTH Software Application median
Revenue growth (TTM) 4.85% — 12.27%
EPS growth (last fiscal year) (62.42%) (158.02%) 32.11%
Revenue growth, 5-year CAGR (3.03%) — 14.34%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric DFIN WLTH Software Application median
Debt to equity 0.31 0.01 0.02
Current ratio 1.06 1.43 1.53
Net debt to EBITDA 0.71 4.35 0.09

Dividend

Metric DFIN WLTH Software Application median
Dividend yield — — 1.10%
Payout ratio — — 0.28

Size

Metric DFIN WLTH Software Application median
Market cap 1.64b 1.66b 487.58m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack