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

PTC Inc. and Unity Software Inc. are both Software Application companies. Unity Software Inc. is the larger, with a market value of $18.2B against $15.1B — 1.2× the size. Unity Software Inc. has negative trailing earnings, so its P/E is not meaningful; PTC Inc. trades at 13.3×. PTC Inc. grew revenue faster over the last twelve months: 19.5% against 14.0%. PTC Inc. has the higher net margin (41.4% vs −29.0%) and the higher return on invested capital (15.4% vs −13.2%). Across the 20 metrics below, PTC Inc. leads on 17 and Unity Software Inc. on 3.

Valuation

Metric PTC U Software Application median
P/E 13.28 n/m 24.79
P/S 5.36 8.97 2.67
P/B 4.56 5.98 3.01
Price to free cash flow 17.02 34.80 16.59
EV/EBITDA 13.52 n/m 14.40
EV/Sales 5.72 8.91 2.62
Earnings yield 7.53% (3.27%) 0.00%
Free cash flow yield 5.88% 2.87% 1.91%

Profitability

Metric PTC U Software Application median
Gross margin 84.50% 64.85% 67.03%
Operating margin 37.81% (30.37%) 0.00%
Net margin 41.43% (28.97%) 0.00%
Free cash flow margin 31.67% 26.54% 4.32%
Return on equity 35.05% (18.85%) 0.00%
Return on assets 19.21% (8.78%) 0.00%
Return on invested capital 15.37% (13.16%) 0.00%

Growth

Metric PTC U Software Application median
Revenue growth (TTM) 19.50% 13.98% 12.40%
EPS growth (last fiscal year) 96.79% 42.86% —
Revenue growth, 5-year CAGR 13.44% 19.08% 13.72%
Net income growth, 5-year CAGR 41.22% 0.00% 0.00%

Health

Metric PTC U Software Application median
Debt to equity 0.41 0.74 0.02
Current ratio 1.03 2.03 1.55
Net debt to EBITDA 0.91 (9.91) 0.06

Dividend

Metric PTC U Software Application median
Dividend yield 1.48% — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric PTC U Software Application median
Market cap 15.05b 18.19b 396.11m

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