Docusign Inc. (DOCU) vs Unity Software Inc. (U)

Docusign Inc. and Unity Software Inc. are both Software Application companies. Unity Software Inc. is the larger, with a market value of $21.5B against $14.8B — 1.5× the size. Unity Software Inc. has negative trailing earnings, so its P/E is not meaningful; Docusign Inc. trades at 47.3×. Unity Software Inc. grew revenue faster over the last twelve months: 20.9% against 8.59%. Docusign Inc. has the higher net margin (9.82% vs −15.6%) and the higher return on invested capital (26.7% vs −8.55%). Across the 20 metrics below, Docusign Inc. leads on 14 and Unity Software Inc. on 6.

Valuation

Metric DOCU U Software Application median
P/E 47.29 n/m 25.90
P/S 4.49 11.05 3.04
P/B 8.79 7.40 2.60
Price to free cash flow 12.61 40.73 17.17
EV/EBITDA 18.80 591.56 15.48
EV/Sales 4.47 10.86 2.89
Earnings yield 2.11% (1.63%) 0.00%
Free cash flow yield 7.93% 2.45% 1.98%

Profitability

Metric DOCU U Software Application median
Gross margin 79.49% 67.65% 66.89%
Operating margin 11.96% (17.87%) 0.00%
Net margin 9.82% (15.59%) 0.00%
Free cash flow margin 35.65% 27.84% 5.77%
Return on equity 17.80% (10.52%) 0.00%
Return on assets 8.34% (4.95%) 0.00%
Return on invested capital 26.71% (8.55%) 0.00%

Growth

Metric DOCU U Software Application median
Revenue growth (TTM) 8.59% 20.86% 12.27%
EPS growth (last fiscal year) (70.87%) 42.86% 32.11%
Revenue growth, 5-year CAGR 17.25% 19.08% 14.34%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DOCU U Software Application median
Debt to equity 0.00 0.69 0.02
Current ratio 0.64 2.16 1.53
Net debt to EBITDA (1.26) (9.91) 0.09

Dividend

Metric DOCU U Software Application median
Dividend yield — — 1.10%
Payout ratio — — 0.28

Size

Metric DOCU U Software Application median
Market cap 14.75b 21.48b 487.58m

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