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 $18.2B against $12.8B — 1.4× the size. Unity Software Inc. has negative trailing earnings, so its P/E is not meaningful; Docusign Inc. trades at 40.4×. Unity Software Inc. grew revenue faster over the last twelve months: 14.0% against 8.59%. Docusign Inc. has the higher net margin (9.82% vs −29.0%) and the higher return on invested capital (26.7% vs −13.2%). Across the 19 metrics below, Docusign Inc. leads on 13 and Unity Software Inc. on 6.

Valuation

Metric DOCU U Software Application median
P/E 40.42 n/m 24.79
P/S 3.84 8.97 2.67
P/B 7.51 5.98 3.01
Price to free cash flow 10.77 34.80 16.59
EV/EBITDA 15.35 n/m 14.40
EV/Sales 3.65 8.91 2.62
Earnings yield 2.47% (3.27%) 0.00%
Free cash flow yield 9.28% 2.87% 1.91%

Profitability

Metric DOCU U Software Application median
Gross margin 79.49% 64.85% 67.03%
Operating margin 11.96% (30.37%) 0.00%
Net margin 9.82% (28.97%) 0.00%
Free cash flow margin 35.65% 26.54% 4.32%
Return on equity 17.80% (18.85%) 0.00%
Return on assets 8.34% (8.78%) 0.00%
Return on invested capital 26.71% (13.16%) 0.00%

Growth

Metric DOCU U Software Application median
Revenue growth (TTM) 8.59% 13.98% 12.40%
EPS growth (last fiscal year) (70.87%) 42.86% —
Revenue growth, 5-year CAGR 17.25% 19.08% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DOCU U Software Application median
Debt to equity 0.00 0.74 0.02
Current ratio 0.64 2.03 1.55
Net debt to EBITDA (1.26) (9.91) 0.06

Dividend

Metric DOCU U Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric DOCU U Software Application median
Market cap 12.83b 18.19b 396.11m

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