Tyler Technologies, Inc. (TYL) vs Unity Software Inc. (U)

Tyler Technologies, Inc. and Unity Software Inc. are both Software Application companies. Unity Software Inc. is the larger, with a market value of $17.3B against $14.9B — 1.2× the size. Unity Software Inc. has negative trailing earnings, so its P/E is not meaningful; Tyler Technologies, Inc. trades at 51.6×. Unity Software Inc. grew revenue faster over the last twelve months: 14.0% against 8.19%. Tyler Technologies, Inc. has the higher net margin (13.4% vs −29.0%) and the higher return on invested capital (6.61% vs −13.2%). Across the 20 metrics below, Tyler Technologies, Inc. leads on 14 and Unity Software Inc. on 6.

Valuation

Metric TYL U Software Application median
P/E 51.60 n/m 26.76
P/S 6.74 8.15 2.99
P/B 5.40 5.44 2.59
Price to free cash flow 23.22 31.61 18.02
EV/EBITDA 33.35 n/m 16.06
EV/Sales 7.17 8.09 2.92
Earnings yield 1.94% (3.60%) 0.00%
Free cash flow yield 4.31% 3.16% 2.00%

Profitability

Metric TYL U Software Application median
Gross margin 47.21% 64.85% 67.03%
Operating margin 15.14% (30.37%) 0.00%
Net margin 13.36% (28.97%) 0.00%
Free cash flow margin 29.05% 26.54% 5.71%
Return on equity 9.73% (18.85%) 0.00%
Return on assets 5.78% (8.78%) 0.00%
Return on invested capital 6.61% (13.16%) 0.00%

Growth

Metric TYL U Software Application median
Revenue growth (TTM) 8.19% 13.98% 12.43%
EPS growth (last fiscal year) 19.01% 42.86% 31.92%
Revenue growth, 5-year CAGR 15.87% 19.08% 14.34%
Net income growth, 5-year CAGR 10.13% 0.00% 0.00%

Health

Metric TYL U Software Application median
Debt to equity 0.46 0.74 0.03
Current ratio 1.55 2.03 1.56
Net debt to EBITDA (0.98) (9.91) 0.08

Dividend

Metric TYL U Software Application median
Dividend yield — — 0.93%
Payout ratio — — 0.29

Size

Metric TYL U Software Application median
Market cap 14.87b 17.28b 423.97m

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