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

Upwork Inc. and Yelp Inc. are both Internet Content & Information companies. Upwork Inc. is the larger, with a market value of $1.3B against $1.1B — 1.2× the size. Yelp Inc. trades at the lower P/E: 9.8× against 12.4×. Yelp Inc. grew revenue faster over the last twelve months: 1.50% against −1.24%. Upwork Inc. has the higher net margin (13.5% vs 8.59%) and the higher return on invested capital (22.1% vs 16.6%). Across the 21 metrics below, Yelp Inc. leads on 13 and Upwork Inc. on 8.

Valuation

Metric UPWK YELP Internet Content & Information median
P/E 12.38 9.80 12.38
P/S 1.68 0.78 0.93
P/B 1.98 1.77 1.24
Price to free cash flow 8.08 3.93 10.76
EV/EBITDA 10.83 4.26 10.74
EV/Sales 2.21 0.78 1.20
Earnings yield 8.08% 10.21% (1.71%)
Free cash flow yield 12.38% 25.43% 4.26%

Profitability

Metric UPWK YELP Internet Content & Information median
Gross margin 76.93% 89.65% 63.25%
Operating margin 16.05% 11.73% (1.87%)
Net margin 13.53% 8.59% (1.37%)
Free cash flow margin 20.74% 20.19% 3.47%
Return on equity 16.27% 18.19% (1.19%)
Return on assets 9.30% 12.84% 0.00%
Return on invested capital 22.12% 16.61% 0.00%

Growth

Metric UPWK YELP Internet Content & Information median
Revenue growth (TTM) (1.24%) 1.50% 6.92%
EPS growth (last fiscal year) (44.74%) 19.15% 34.37%
Revenue growth, 5-year CAGR 16.09% 10.91% 10.46%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric UPWK YELP Internet Content & Information median
Debt to equity 0.00 0.16 0.01
Current ratio 2.25 1.75 1.84
Net debt to EBITDA (2.10) (1.16) (0.53)

Dividend

Metric UPWK YELP Internet Content & Information median
Dividend yield — — 1.19%
Payout ratio — — 0.27

Size

Metric UPWK YELP Internet Content & Information median
Market cap 1.30b 1.11b 693.23m

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