PDF Solutions, Inc. (PDFS) vs Wealthfront Corporation (WLTH)

PDF Solutions, Inc. and Wealthfront Corporation are both Software Application companies. PDF Solutions, Inc. and Wealthfront Corporation are of similar size ($1.8B and $1.7B). Wealthfront Corporation has negative trailing earnings, so its P/E is not meaningful; PDF Solutions, Inc. trades at 157×. PDF Solutions, Inc. has the higher net margin (4.27% vs −19.4%) and the higher return on invested capital (3.79% vs −59.5%). Across the 16 metrics below, PDF Solutions, Inc. leads on 9 and Wealthfront Corporation on 7.

Valuation

Metric PDFS WLTH Software Application median
P/E 156.92 n/m 25.41
P/S 6.66 4.29 2.73
P/B 4.31 2.57 2.57
Price to free cash flow n/m 11.16 17.58
EV/EBITDA 41.72 n/m 15.36
EV/Sales 6.46 3.05 2.59
Earnings yield 0.64% (3.57%) 0.00%
Free cash flow yield (1.86%) 8.96% 2.24%

Profitability

Metric PDFS WLTH Software Application median
Gross margin 71.46% 89.11% 67.03%
Operating margin 8.15% (40.82%) 0.00%
Net margin 4.27% (19.42%) 0.00%
Free cash flow margin (0.56%) 38.48% 5.01%
Return on equity 3.27% 0.00% 0.00%
Return on assets 2.26% (8.10%) 0.00%
Return on invested capital 3.79% (59.47%) 0.00%

Growth

Metric PDFS WLTH Software Application median
Revenue growth (TTM) 23.05% — 12.48%
EPS growth (last fiscal year) (120.00%) (154.20%) 32.26%
Revenue growth, 5-year CAGR 19.99% — 14.21%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric PDFS WLTH Software Application median
Debt to equity 0.18 0.01 0.02
Current ratio 3.45 1.43 1.52
Net debt to EBITDA 1.22 4.35 0.08

Dividend

Metric PDFS WLTH Software Application median
Dividend yield — — 0.95%
Payout ratio — — 0.29

Size

Metric PDFS WLTH Software Application median
Market cap 1.74b 1.75b 357.77m

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