Vertex, Inc. (VERX) vs Wealthfront Corporation (WLTH)

Vertex, Inc. and Wealthfront Corporation are both Software Application companies. Vertex, Inc. is the larger, with a market value of $1.9B against $1.6B — 1.2× the size. Wealthfront Corporation has negative trailing earnings, so its P/E is not meaningful; Vertex, Inc. trades at 331×. Vertex, Inc. has the higher net margin (0.45% vs −19.4%) and the higher return on invested capital (−2.39% vs −59.5%). Across the 17 metrics below, Vertex, Inc. leads on 10 and Wealthfront Corporation on 7.

Valuation

Metric VERX WLTH Software Application median
P/E 330.52 n/m 24.79
P/S 2.33 4.11 2.67
P/B 7.61 2.47 3.01
Price to free cash flow 36.22 10.68 16.59
EV/EBITDA 19.28 n/m 14.40
EV/Sales 2.47 2.87 2.62
Earnings yield 0.30% (20.11%) 0.00%
Free cash flow yield 2.76% 9.36% 1.91%

Profitability

Metric VERX WLTH Software Application median
Gross margin 63.95% 89.11% 67.03%
Operating margin (1.69%) (40.82%) 0.00%
Net margin 0.45% (19.42%) 0.00%
Free cash flow margin 6.43% 38.48% 4.32%
Return on equity 1.46% 0.00% 0.00%
Return on assets 0.30% (8.10%) 0.00%
Return on invested capital (2.39%) (59.47%) 0.00%

Growth

Metric VERX WLTH Software Application median
Revenue growth (TTM) 10.83% — 12.40%
EPS growth (last fiscal year) 111.76% (154.20%) —
Revenue growth, 5-year CAGR 14.84% — 13.72%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric VERX WLTH Software Application median
Debt to equity 1.40 0.01 0.02
Current ratio 0.87 1.43 1.55
Net debt to EBITDA 0.22 4.35 0.06

Dividend

Metric VERX WLTH Software Application median
Dividend yield 0.05% — 1.25%
Payout ratio 0.00 — 0.00

Size

Metric VERX WLTH Software Application median
Market cap 1.89b 1.60b 396.11m

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