Donnelley Financial Solutions (DFIN) vs WeRide Inc. (WRD)

Donnelley Financial Solutions and WeRide Inc. are both Software Application companies. Donnelley Financial Solutions and WeRide Inc. are of similar size ($1.3B and $1.3B). WeRide Inc. has negative trailing earnings, so its P/E is not meaningful; Donnelley Financial Solutions trades at 34.5×. Donnelley Financial Solutions has the higher net margin (4.53% vs −199.6%) and the higher return on invested capital (16.2% vs −68.9%). Across the 16 metrics below, Donnelley Financial Solutions leads on 12 and WeRide Inc. on 4.

Valuation

Metric DFIN WRD Software Application median
P/E 34.55 n/m 25.41
P/S 1.67 11.32 2.73
P/B 3.36 1.42 2.57
Price to free cash flow 8.54 n/m 17.58
EV/EBITDA 6.92 n/m 15.36
EV/Sales 1.90 5.33 2.59
Earnings yield 2.89% (18.38%) 0.00%
Free cash flow yield 11.71% (38.57%) 2.24%

Profitability

Metric DFIN WRD Software Application median
Gross margin 64.21% 32.86% 67.03%
Operating margin 18.91% (218.36%) 0.00%
Net margin 4.53% (199.55%) 0.00%
Free cash flow margin 19.59% (436.85%) 5.01%
Return on equity 8.59% (92.25%) 0.00%
Return on assets 4.12% (22.14%) 0.00%
Return on invested capital 16.23% (68.91%) 0.00%

Growth

Metric DFIN WRD Software Application median
Revenue growth (TTM) 2.98% — 12.48%
EPS growth (last fiscal year) (62.42%) 77.78% 32.26%
Revenue growth, 5-year CAGR (3.03%) — 14.21%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric DFIN WRD Software Application median
Debt to equity 0.53 0.09 0.02
Current ratio 1.33 5.36 1.52
Net debt to EBITDA 0.71 4.03 0.08

Dividend

Metric DFIN WRD Software Application median
Dividend yield — — 0.95%
Payout ratio — — 0.29

Size

Metric DFIN WRD Software Application median
Market cap 1.26b 1.32b 357.77m

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