Qualys, Inc. (QLYS) vs WEX Inc. (WEX)

Qualys, Inc. and WEX Inc. are both Software Infrastructure companies. Qualys, Inc. and WEX Inc. are of similar size ($6.3B and $6.3B). WEX Inc. trades at the lower P/E: 17.5× against 29.7×. Qualys, Inc. grew revenue faster over the last twelve months: 10.4% against 7.46%. Qualys, Inc. has the higher net margin (29.4% vs 12.6%) and the higher return on invested capital (111.1% vs 0.00%). Across the 22 metrics below, Qualys, Inc. leads on 15 and WEX Inc. on 7.

Valuation

Metric QLYS WEX Software Infrastructure median
P/E 29.70 17.53 28.02
P/S 8.57 2.22 3.07
P/B 10.72 4.60 3.36
Price to free cash flow 19.82 123.97 17.12
EV/EBITDA 22.25 3.80 14.91
EV/Sales 7.97 1.42 3.03
Earnings yield 3.37% 5.70% 0.13%
Free cash flow yield 5.05% 0.81% 1.15%

Profitability

Metric QLYS WEX Software Infrastructure median
Gross margin 83.33% 59.61% 61.23%
Operating margin 34.36% 25.47% 0.00%
Net margin 29.38% 12.56% 0.00%
Free cash flow margin 44.66% 1.79% 1.67%
Return on equity 38.59% 30.19% 0.59%
Return on assets 19.92% 2.25% 0.00%
Return on invested capital 111.08% 0.00% 0.00%

Growth

Metric QLYS WEX Software Infrastructure median
Revenue growth (TTM) 10.35% 7.46% 13.41%
EPS growth (last fiscal year) 16.99% 12.93% —
Revenue growth, 5-year CAGR 13.01% 11.27% 15.81%
Net income growth, 5-year CAGR 16.71% 0.00% 0.00%

Health

Metric QLYS WEX Software Infrastructure median
Debt to equity 0.00 2.62 0.06
Current ratio 1.38 1.04 1.55
Net debt to EBITDA (1.91) (2.49) 0.08

Dividend

Metric QLYS WEX Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric QLYS WEX Software Infrastructure median
Market cap 6.33b 6.32b 835.96m

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