PDF Solutions, Inc. (PDFS) vs WeRide Inc. (WRD)

PDF Solutions, Inc. and WeRide Inc. are both Software Application companies. PDF Solutions, Inc. is the larger, with a market value of $2.0B against $1.8B — 1.1× the size. WeRide Inc. has negative trailing earnings, so its P/E is not meaningful; PDF Solutions, Inc. trades at 198×. PDF Solutions, Inc. has the higher net margin (4.27% vs −199.6%) and the higher return on invested capital (3.79% vs −68.9%). Across the 16 metrics below, PDF Solutions, Inc. leads on 12 and WeRide Inc. on 4.

Valuation

Metric PDFS WRD Software Application median
P/E 198.20 n/m 24.79
P/S 8.41 15.35 2.67
P/B 5.44 1.92 3.01
Price to free cash flow n/m n/m 16.59
EV/EBITDA 53.04 n/m 14.40
EV/Sales 8.21 9.36 2.62
Earnings yield 0.50% (13.56%) 0.00%
Free cash flow yield (1.47%) (28.46%) 1.91%

Profitability

Metric PDFS WRD Software Application median
Gross margin 71.46% 32.86% 67.03%
Operating margin 8.15% (218.36%) 0.00%
Net margin 4.27% (199.55%) 0.00%
Free cash flow margin (0.56%) (436.85%) 4.32%
Return on equity 3.27% (92.25%) 0.00%
Return on assets 2.26% (22.14%) 0.00%
Return on invested capital 3.79% (68.91%) 0.00%

Growth

Metric PDFS WRD Software Application median
Revenue growth (TTM) 23.05% — 12.40%
EPS growth (last fiscal year) (120.00%) 77.78% —
Revenue growth, 5-year CAGR 19.99% — 13.72%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric PDFS WRD Software Application median
Debt to equity 0.18 0.09 0.02
Current ratio 3.45 5.36 1.55
Net debt to EBITDA 1.22 4.03 0.06

Dividend

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

Size

Metric PDFS WRD Software Application median
Market cap 2.02b 1.79b 396.11m

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