Tyler Technologies, Inc. (TYL) vs Zoom Communications, Inc. (ZM)

Tyler Technologies, Inc. and Zoom Communications, Inc. are both Software Application companies. Zoom Communications, Inc. is the larger, with a market value of $25.9B against $17.1B — 1.5× the size. Zoom Communications, Inc. trades at the lower P/E: 8.1× against 53.6×. Tyler Technologies, Inc. grew revenue faster over the last twelve months: 7.96% against 5.04%. Zoom Communications, Inc. has the higher net margin (65.2% vs 13.5%) and the higher return on invested capital (18.3% vs 7.28%). Across the 22 metrics below, Zoom Communications, Inc. leads on 20 and Tyler Technologies, Inc. on 2.

Valuation

Metric TYL ZM Software Application median
P/E 53.65 8.07 25.90
P/S 7.02 5.22 3.04
P/B 6.24 2.31 2.60
Price to free cash flow 23.69 13.55 17.17
EV/EBITDA 34.13 12.02 15.48
EV/Sales 7.47 3.77 2.89
Earnings yield 1.86% 12.40% 0.00%
Free cash flow yield 4.22% 7.38% 1.98%

Profitability

Metric TYL ZM Software Application median
Gross margin 47.70% 77.30% 66.89%
Operating margin 15.59% 23.73% 0.00%
Net margin 13.51% 65.19% 0.00%
Free cash flow margin 29.63% 38.55% 5.77%
Return on equity 10.49% 32.14% 0.00%
Return on assets 6.04% 26.43% 0.00%
Return on invested capital 7.28% 18.27% 0.00%

Growth

Metric TYL ZM Software Application median
Revenue growth (TTM) 7.96% 5.04% 12.27%
EPS growth (last fiscal year) 19.01% 92.52% 32.11%
Revenue growth, 5-year CAGR 15.87% 12.92% 14.34%
Net income growth, 5-year CAGR 10.13% 23.12% 0.00%

Health

Metric TYL ZM Software Application median
Debt to equity 0.51 0.00 0.02
Current ratio 1.33 3.83 1.53
Net debt to EBITDA (0.98) (5.08) 0.09

Dividend

Metric TYL ZM Software Application median
Dividend yield — — 1.10%
Payout ratio — — 0.28

Size

Metric TYL ZM Software Application median
Market cap 17.11b 25.92b 487.58m

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