Upwork Inc. (UPWK) vs Yelp Inc. (YELP)

Upwork Inc. and Yelp Inc. are both Internet Content & Information companies. Upwork Inc. and Yelp Inc. are of similar size ($1.1B and $1.1B). Yelp Inc. trades at the lower P/E: 9.4× against 10.5×. Upwork Inc. grew revenue faster over the last twelve months: 1.86% against 1.50%. Upwork Inc. has the higher net margin (12.9% vs 8.59%) and the higher return on invested capital (20.8% vs 16.6%). Across the 21 metrics below, Yelp Inc. leads on 14 and Upwork Inc. on 7.

Valuation

Metric UPWK YELP Internet Content & Information median
P/E 10.54 9.36 11.54
P/S 1.33 0.74 0.86
P/B 1.71 1.69 1.20
Price to free cash flow 5.95 3.76 9.63
EV/EBITDA 7.81 4.07 8.68
EV/Sales 1.46 0.75 1.18
Earnings yield 9.49% 10.69% (2.42%)
Free cash flow yield 16.80% 26.62% 2.27%

Profitability

Metric UPWK YELP Internet Content & Information median
Gross margin 77.21% 89.65% 66.84%
Operating margin 15.10% 11.73% (3.41%)
Net margin 12.93% 8.59% (3.02%)
Free cash flow margin 22.30% 20.19% 1.75%
Return on equity 16.70% 18.19% 0.00%
Return on assets 8.03% 12.84% (0.36%)
Return on invested capital 20.78% 16.61% 0.00%

Growth

Metric UPWK YELP Internet Content & Information median
Revenue growth (TTM) 1.86% 1.50% 2.65%
EPS growth (last fiscal year) (44.74%) 19.15% 34.45%
Revenue growth, 5-year CAGR 16.09% 10.91% 9.73%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric UPWK YELP Internet Content & Information median
Debt to equity 0.59 0.16 0.01
Current ratio 1.42 1.75 1.82
Net debt to EBITDA (2.10) (1.16) (0.48)

Dividend

Metric UPWK YELP Internet Content & Information median
Dividend yield — — 1.07%
Payout ratio — — 0.28

Size

Metric UPWK YELP Internet Content & Information median
Market cap 1.09b 1.11b 318.52m

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