Grab Holdings Limited (GRAB) vs Unity Software Inc. (U)

Grab Holdings Limited and Unity Software Inc. are both Software Application companies. Unity Software Inc. is the larger, with a market value of $21.5B against $14.2B — 1.5× the size. Unity Software Inc. has negative trailing earnings, so its P/E is not meaningful; Grab Holdings Limited trades at 25.9×. Grab Holdings Limited grew revenue faster over the last twelve months: 22.9% against 20.9%. Grab Holdings Limited has the higher net margin (14.8% vs −15.6%) and the higher return on invested capital (3.43% vs −8.55%). Across the 19 metrics below, Grab Holdings Limited leads on 15 and Unity Software Inc. on 4.

Valuation

Metric GRAB U Software Application median
P/E 25.89 n/m 25.90
P/S 3.58 11.05 3.04
P/B 1.96 7.40 2.60
Price to free cash flow n/m 40.73 17.17
EV/EBITDA 24.92 591.56 15.48
EV/Sales 2.67 10.86 2.89
Earnings yield 3.86% (1.63%) 0.00%
Free cash flow yield (0.01%) 2.45% 1.98%

Profitability

Metric GRAB U Software Application median
Gross margin 44.39% 67.65% 66.89%
Operating margin 5.06% (17.87%) 0.00%
Net margin 14.79% (15.59%) 0.00%
Free cash flow margin (0.05%) 27.84% 5.77%
Return on equity 8.53% (10.52%) 0.00%
Return on assets 4.59% (4.95%) 0.00%
Return on invested capital 3.43% (8.55%) 0.00%

Growth

Metric GRAB U Software Application median
Revenue growth (TTM) 22.92% 20.86% 12.27%
EPS growth (last fiscal year) 300.00% 42.86% 32.11%
Revenue growth, 5-year CAGR 48.35% 19.08% 14.34%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GRAB U Software Application median
Debt to equity 0.29 0.69 0.02
Current ratio 1.38 2.16 1.53
Net debt to EBITDA (19.63) (9.91) 0.09

Dividend

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

Size

Metric GRAB U Software Application median
Market cap 14.16b 21.48b 487.58m

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