Fair Isaac Corporation (FICO) vs Unity Software Inc. (U)

Fair Isaac Corporation and Unity Software Inc. are both Software Application companies. Unity Software Inc. is the larger, with a market value of $19.1B against $16.6B — 1.1× the size. Unity Software Inc. has negative trailing earnings, so its P/E is not meaningful; Fair Isaac Corporation trades at 22.0×. Fair Isaac Corporation grew revenue faster over the last twelve months: 24.1% against 14.0%. Fair Isaac Corporation has the higher net margin (34.1% vs −29.0%) and the higher return on invested capital (62.5% vs −13.2%). Across the 19 metrics below, Fair Isaac Corporation leads on 13 and Unity Software Inc. on 6.

Valuation

Metric FICO U Software Application median
P/E 22.02 n/m 25.41
P/S 7.26 8.72 2.73
P/B n/m 5.82 2.57
Price to free cash flow 18.08 33.83 17.58
EV/EBITDA 18.13 n/m 15.36
EV/Sales 9.49 8.67 2.59
Earnings yield 4.54% (3.37%) 0.00%
Free cash flow yield 5.53% 2.96% 2.24%

Profitability

Metric FICO U Software Application median
Gross margin 85.10% 64.85% 67.03%
Operating margin 51.65% (30.37%) 0.00%
Net margin 34.05% (28.97%) 0.00%
Free cash flow margin 40.14% 26.54% 5.01%
Return on equity (29.67%) (18.85%) 0.00%
Return on assets 41.80% (8.78%) 0.00%
Return on invested capital 62.47% (13.16%) 0.00%

Growth

Metric FICO U Software Application median
Revenue growth (TTM) 24.09% 13.98% 12.48%
EPS growth (last fiscal year) 29.78% 42.86% 32.26%
Revenue growth, 5-year CAGR 8.99% 19.08% 14.21%
Net income growth, 5-year CAGR 22.49% 0.00% 0.00%

Health

Metric FICO U Software Application median
Debt to equity (1.36) 0.74 0.02
Current ratio 1.18 2.03 1.52
Net debt to EBITDA 3.11 (9.91) 0.08

Dividend

Metric FICO U Software Application median
Dividend yield — — 0.95%
Payout ratio — — 0.29

Size

Metric FICO U Software Application median
Market cap 16.63b 19.07b 357.77m

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