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

PTC Inc. and Unity Software Inc. are both Software Application companies. PTC Inc. is the larger, with a market value of $21.0B against $19.1B — 1.1× the size. Unity Software Inc. has negative trailing earnings, so its P/E is not meaningful; PTC Inc. trades at 18.6×. 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 16 and Unity Software Inc. on 4.

Valuation

Metric PTC U Software Application median
P/E 18.56 n/m 25.41
P/S 7.49 8.72 2.73
P/B 6.38 5.82 2.57
Price to free cash flow 23.78 33.83 17.58
EV/EBITDA 18.55 n/m 15.36
EV/Sales 7.85 8.67 2.59
Earnings yield 5.39% (3.37%) 0.00%
Free cash flow yield 4.21% 2.96% 2.24%

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% 5.01%
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% 12.48%
EPS growth (last fiscal year) 96.79% 42.86% 32.26%
Revenue growth, 5-year CAGR 13.44% 19.08% 14.21%
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 1.52
Net debt to EBITDA 0.91 (9.91) 0.08

Dividend

Metric PTC U Software Application median
Dividend yield — — 0.95%
Payout ratio — — 0.29

Size

Metric PTC U Software Application median
Market cap 20.98b 19.07b 357.77m

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