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 $19.1B against $13.2B — 1.4× the size. Unity Software Inc. has negative trailing earnings, so its P/E is not meaningful; Manhattan Associates, Inc. trades at 62.9×. Unity Software Inc. grew revenue faster over the last twelve months: 14.0% against 6.48%. Manhattan Associates, Inc. has the higher net margin (18.7% vs −29.0%) and the higher return on invested capital (0.00% vs −13.2%). Across the 20 metrics below, Manhattan Associates, Inc. leads on 11 and Unity Software Inc. on 9.

Valuation

Metric MANH U Software Application median
P/E 62.94 n/m 25.41
P/S 11.59 8.72 2.73
P/B 82.88 5.82 2.57
Price to free cash flow 32.70 33.83 17.58
EV/EBITDA 45.85 n/m 15.36
EV/Sales 11.43 8.67 2.59
Earnings yield 1.59% (3.37%) 0.00%
Free cash flow yield 3.06% 2.96% 2.24%

Profitability

Metric MANH U Software Application median
Gross margin 55.81% 64.85% 67.03%
Operating margin 24.33% (30.37%) 0.00%
Net margin 18.67% (28.97%) 0.00%
Free cash flow margin 35.45% 26.54% 5.01%
Return on equity 96.38% (18.85%) 0.00%
Return on assets 29.13% (8.78%) 0.00%
Return on invested capital 0.00% (13.16%) 0.00%

Growth

Metric MANH U Software Application median
Revenue growth (TTM) 6.48% 13.98% 12.48%
EPS growth (last fiscal year) 2.56% 42.86% 32.26%
Revenue growth, 5-year CAGR 13.02% 19.08% 14.21%
Net income growth, 5-year CAGR 20.32% 0.00% 0.00%

Health

Metric MANH U Software Application median
Debt to equity 0.00 0.74 0.02
Current ratio 0.98 2.03 1.52
Net debt to EBITDA (1.15) (9.91) 0.08

Dividend

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

Size

Metric MANH U Software Application median
Market cap 13.23b 19.07b 357.77m

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