SS&C Technologies Holdings, Inc. (SSNC) vs Unity Software Inc. (U)

SS&C Technologies Holdings, Inc. and Unity Software Inc. are both Software Application companies. Unity Software Inc. is the larger, with a market value of $21.5B against $18.4B — 1.2× the size. Unity Software Inc. has negative trailing earnings, so its P/E is not meaningful; SS&C Technologies Holdings, Inc. trades at 21.8×. Unity Software Inc. grew revenue faster over the last twelve months: 20.9% against 8.57%. SS&C Technologies Holdings, Inc. has the higher net margin (13.2% vs −15.6%) and the higher return on invested capital (6.99% vs −8.55%). Across the 21 metrics below, SS&C Technologies Holdings, Inc. leads on 13 and Unity Software Inc. on 8.

Valuation

Metric SSNC U Software Application median
P/E 21.79 n/m 25.90
P/S 2.84 11.05 3.04
P/B 2.78 7.40 2.60
Price to free cash flow 12.22 40.73 17.17
EV/EBITDA 11.32 591.56 15.48
EV/Sales 3.92 10.86 2.89
Earnings yield 4.59% (1.63%) 0.00%
Free cash flow yield 8.18% 2.45% 1.98%

Profitability

Metric SSNC U Software Application median
Gross margin 48.10% 67.65% 66.89%
Operating margin 23.61% (17.87%) 0.00%
Net margin 13.16% (15.59%) 0.00%
Free cash flow margin 23.21% 27.84% 5.77%
Return on equity 12.59% (10.52%) 0.00%
Return on assets 4.36% (4.95%) 0.00%
Return on invested capital 6.99% (8.55%) 0.00%

Growth

Metric SSNC U Software Application median
Revenue growth (TTM) 8.57% 20.86% 12.27%
EPS growth (last fiscal year) 5.00% 42.86% 32.11%
Revenue growth, 5-year CAGR 6.09% 19.08% 14.34%
Net income growth, 5-year CAGR 4.97% 0.00% 0.00%

Health

Metric SSNC U Software Application median
Debt to equity 1.13 0.69 0.02
Current ratio 1.06 2.16 1.53
Net debt to EBITDA 3.24 (9.91) 0.09

Dividend

Metric SSNC U Software Application median
Dividend yield 1.42% — 1.10%
Payout ratio 0.32 — 0.28

Size

Metric SSNC U Software Application median
Market cap 18.37b 21.48b 487.58m

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