PTC Inc. (PTC) vs Unity Software Inc. (U)

PTC Inc. and Unity Software Inc. are both Software Application companies. PTC Inc. and Unity Software Inc. are of similar size ($21.5B and $21.1B). Unity Software Inc. has negative trailing earnings, so its P/E is not meaningful; PTC Inc. trades at 18.7×. Unity Software Inc. grew revenue faster over the last twelve months: 20.9% against 19.5%. PTC Inc. has the higher net margin (41.4% vs −15.6%) and the higher return on invested capital (15.4% vs −8.55%). Across the 21 metrics below, PTC Inc. leads on 17 and Unity Software Inc. on 4.

Valuation

Metric PTC U Software Application median
P/E 18.71 n/m 25.90
P/S 7.55 11.05 3.04
P/B 6.43 7.40 2.60
Price to free cash flow 23.98 40.73 17.17
EV/EBITDA 18.69 591.56 15.48
EV/Sales 7.92 10.86 2.89
Earnings yield 5.34% (1.63%) 0.00%
Free cash flow yield 4.17% 2.45% 1.98%

Profitability

Metric PTC U Software Application median
Gross margin 84.50% 67.65% 66.89%
Operating margin 37.81% (17.87%) 0.00%
Net margin 41.43% (15.59%) 0.00%
Free cash flow margin 31.67% 27.84% 5.77%
Return on equity 35.05% (10.52%) 0.00%
Return on assets 19.21% (4.95%) 0.00%
Return on invested capital 15.37% (8.55%) 0.00%

Growth

Metric PTC U Software Application median
Revenue growth (TTM) 19.50% 20.86% 12.27%
EPS growth (last fiscal year) 96.79% 42.86% 32.11%
Revenue growth, 5-year CAGR 13.44% 19.08% 14.34%
Net income growth, 5-year CAGR 41.22% 0.00% 0.00%

Health

Metric PTC U Software Application median
Debt to equity 0.41 0.69 0.02
Current ratio 1.03 2.16 1.53
Net debt to EBITDA 0.91 (9.91) 0.09

Dividend

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

Size

Metric PTC U Software Application median
Market cap 21.14b 21.48b 487.58m

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