Manhattan Associates, Inc. (MANH) vs Unity Software Inc. (U)

Manhattan Associates, 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 — 1.4× the size. Unity Software Inc. has negative trailing earnings, so its P/E is not meaningful; Manhattan Associates, Inc. trades at 71.0×. Unity Software Inc. grew revenue faster over the last twelve months: 20.9% against 8.42%. Manhattan Associates, Inc. has the higher net margin (18.4% vs −15.6%) and the higher return on invested capital (13,484.1% vs −8.55%). Across the 21 metrics below, Manhattan Associates, Inc. leads on 12 and Unity Software Inc. on 9.

Valuation

Metric MANH U Software Application median
P/E 70.99 n/m 25.90
P/S 12.90 11.05 3.04
P/B 74.31 7.40 2.60
Price to free cash flow 39.30 40.73 17.17
EV/EBITDA 51.48 591.56 15.48
EV/Sales 12.73 10.86 2.89
Earnings yield 1.41% (1.63%) 0.00%
Free cash flow yield 2.54% 2.45% 1.98%

Profitability

Metric MANH U Software Application median
Gross margin 55.93% 67.65% 66.89%
Operating margin 24.14% (17.87%) 0.00%
Net margin 18.41% (15.59%) 0.00%
Free cash flow margin 32.82% 27.84% 5.77%
Return on equity 83.51% (10.52%) 0.00%
Return on assets 28.03% (4.95%) 0.00%
Return on invested capital 13,484.10% (8.55%) 0.00%

Growth

Metric MANH U Software Application median
Revenue growth (TTM) 8.42% 20.86% 12.27%
EPS growth (last fiscal year) 2.56% 42.86% 32.11%
Revenue growth, 5-year CAGR 13.02% 19.08% 14.34%
Net income growth, 5-year CAGR 20.32% 0.00% 0.00%

Health

Metric MANH U Software Application median
Debt to equity 0.00 0.69 0.02
Current ratio 1.07 2.16 1.53
Net debt to EBITDA (1.15) (9.91) 0.09

Dividend

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

Size

Metric MANH U Software Application median
Market cap 14.82b 21.48b 487.58m

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