Vertex, Inc. (VERX) vs WeRide Inc. (WRD)

Vertex, Inc. and WeRide Inc. are both Software Application companies. Vertex, Inc. and WeRide Inc. are of similar size ($1.9B and $1.8B). WeRide Inc. 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 −199.6%) and the higher return on invested capital (−2.39% vs −68.9%). Across the 16 metrics below, Vertex, Inc. leads on 13 and WeRide Inc. on 3.

Valuation

Metric VERX WRD Software Application median
P/E 330.52 n/m 24.79
P/S 2.33 15.35 2.67
P/B 7.61 1.92 3.01
Price to free cash flow 36.22 n/m 16.59
EV/EBITDA 19.28 n/m 14.40
EV/Sales 2.47 9.36 2.62
Earnings yield 0.30% (13.56%) 0.00%
Free cash flow yield 2.76% (28.46%) 1.91%

Profitability

Metric VERX WRD Software Application median
Gross margin 63.95% 32.86% 67.03%
Operating margin (1.69%) (218.36%) 0.00%
Net margin 0.45% (199.55%) 0.00%
Free cash flow margin 6.43% (436.85%) 4.32%
Return on equity 1.46% (92.25%) 0.00%
Return on assets 0.30% (22.14%) 0.00%
Return on invested capital (2.39%) (68.91%) 0.00%

Growth

Metric VERX WRD Software Application median
Revenue growth (TTM) 10.83% — 12.40%
EPS growth (last fiscal year) 111.76% 77.78% —
Revenue growth, 5-year CAGR 14.84% — 13.72%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric VERX WRD Software Application median
Debt to equity 1.40 0.09 0.02
Current ratio 0.87 5.36 1.55
Net debt to EBITDA 0.22 4.03 0.06

Dividend

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

Size

Metric VERX WRD Software Application median
Market cap 1.89b 1.79b 396.11m

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