PDF Solutions, Inc. (PDFS) vs Vertex, Inc. (VERX)

PDF Solutions, Inc. and Vertex, Inc. are both Software Application companies. PDF Solutions, Inc. and Vertex, Inc. are of similar size ($2.0B and $1.9B). PDF Solutions, Inc. trades at the lower P/E: 198× against 331×. PDF Solutions, Inc. grew revenue faster over the last twelve months: 23.1% against 10.8%. PDF Solutions, Inc. has the higher net margin (4.27% vs 0.45%) and the higher return on invested capital (3.79% vs −2.39%). Across the 20 metrics below, PDF Solutions, Inc. leads on 13 and Vertex, Inc. on 7.

Valuation

Metric PDFS VERX Software Application median
P/E 198.20 330.52 24.79
P/S 8.41 2.33 2.67
P/B 5.44 7.61 3.01
Price to free cash flow n/m 36.22 16.59
EV/EBITDA 53.04 19.28 14.40
EV/Sales 8.21 2.47 2.62
Earnings yield 0.50% 0.30% 0.00%
Free cash flow yield (1.47%) 2.76% 1.91%

Profitability

Metric PDFS VERX Software Application median
Gross margin 71.46% 63.95% 67.03%
Operating margin 8.15% (1.69%) 0.00%
Net margin 4.27% 0.45% 0.00%
Free cash flow margin (0.56%) 6.43% 4.32%
Return on equity 3.27% 1.46% 0.00%
Return on assets 2.26% 0.30% 0.00%
Return on invested capital 3.79% (2.39%) 0.00%

Growth

Metric PDFS VERX Software Application median
Revenue growth (TTM) 23.05% 10.83% 12.40%
EPS growth (last fiscal year) (120.00%) 111.76% —
Revenue growth, 5-year CAGR 19.99% 14.84% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PDFS VERX Software Application median
Debt to equity 0.18 1.40 0.02
Current ratio 3.45 0.87 1.55
Net debt to EBITDA 1.22 0.22 0.06

Dividend

Metric PDFS VERX Software Application median
Dividend yield — 0.05% 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric PDFS VERX Software Application median
Market cap 2.02b 1.89b 396.11m

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