Upwork Inc. (UPWK) vs WEBTOON Entertainment Inc. (WBTN)

Upwork Inc. and WEBTOON Entertainment Inc. are both Internet Content & Information companies. WEBTOON Entertainment Inc. is the larger, with a market value of $1.5B against $1.0B — 1.5× the size. WEBTOON Entertainment Inc. has negative trailing earnings, so its P/E is not meaningful; Upwork Inc. trades at 10.2×. Upwork Inc. grew revenue faster over the last twelve months: 1.86% against −0.49%. Upwork Inc. has the higher net margin (12.9% vs −25.1%) and the higher return on invested capital (20.8% vs −5.26%). Across the 18 metrics below, Upwork Inc. leads on 12 and WEBTOON Entertainment Inc. on 6.

Valuation

Metric UPWK WBTN Internet Content & Information median
P/E 10.19 n/m 10.24
P/S 1.28 1.09 0.87
P/B 1.65 1.25 1.32
Price to free cash flow 5.75 n/m 8.85
EV/EBITDA 7.57 2.86 8.86
EV/Sales 1.42 0.67 1.15
Earnings yield 9.82% (23.82%) (1.58%)
Free cash flow yield 17.38% (0.92%) 2.32%

Profitability

Metric UPWK WBTN Internet Content & Information median
Gross margin 77.21% 24.45% 66.84%
Operating margin 15.10% (3.78%) (3.41%)
Net margin 12.93% (25.14%) (3.02%)
Free cash flow margin 22.30% (1.00%) 1.75%
Return on equity 16.70% (24.94%) 0.00%
Return on assets 8.03% (19.11%) (0.36%)
Return on invested capital 20.78% (5.26%) 0.00%

Growth

Metric UPWK WBTN Internet Content & Information median
Revenue growth (TTM) 1.86% (0.49%) 2.65%
EPS growth (last fiscal year) (44.74%) (119.83%) —
Revenue growth, 5-year CAGR 16.09% — 9.73%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric UPWK WBTN Internet Content & Information median
Debt to equity 0.59 0.00 0.01
Current ratio 1.42 2.63 1.82
Net debt to EBITDA (2.10) (1.89) (0.48)

Dividend

Metric UPWK WBTN Internet Content & Information median
Dividend yield — — 3.19%
Payout ratio 0.00 — 0.00

Size

Metric UPWK WBTN Internet Content & Information median
Market cap 1.01b 1.48b 283.68m

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