Best Application Software Stocks
SaaS, vertical software, productivity tools. The highest-margin business model in the public-equity universe when scale + retention compound - 80%+ gross margins are routine.
Industry leader
Fair Isaac Corporation FICO
Buffett-Fit: 85/100
What drives this industry
The Application Software moat is built on switching costs + recurring revenue. Net-revenue-retention above 110% means existing customers expand faster than churn - the math of a compounder. Sustained ROIC above 25% plus FCF margins above 25% is the Buffett-quality threshold. Watch the rule-of-40 (growth + FCF margin) as the single quality + growth composite.
Top 50 ranked by Buffett-Fit
Sorted by composite quality score - ROIC, margin stability, balance-sheet strength, growth quality. Click any ticker for the full Buffett verdict.
- 1
FICOFair Isaac Corporation28.8B mcap
85Q - 2
ADSKAutodesk, Inc.50.9B mcap
80Q - 3
NPNeptune Insurance Holdings Inc.2.6B mcap
78Q - 4
CDNSCadence Design Systems, Inc.103.0B mcap
78Q - 5
APPAppLovin Corporation161.8B mcap
76Q - 6
DSGXThe Descartes Systems Group Inc.6.1B mcap
73Q - 7
INTUIntuit Inc.87.5B mcap
71Q - 8
BSYBentley Systems, Incorporated9.7B mcap
69Q - 9
GRNDGrindr Inc.2.3B mcap
68Q - 10
KAROKarooooo Ltd.1.5B mcap
68Q - 11
ADBEAdobe Inc.98.9B mcap
67Q - 12
NOWServiceNow, Inc.105.3B mcap
63Q - 13
IDCCInterDigital, Inc.6.7B mcap
62Q - 14
PTCPTC Inc.17.1B mcap
62Q - 15
PAYCPaycom Software, Inc.7.5B mcap
61Q - 16
MANHManhattan Associates, Inc.8.2B mcap
61Q - 17
CVLTCommvault Systems, Inc.4.4B mcap
60Q - 18
TYLTyler Technologies, Inc.13.2B mcap
59Q - 19
DVDoubleVerify Holdings, Inc.1.5B mcap
57Q - 20
YOUClear Secure, Inc.6.0B mcap
57Q - 21
PLUSePlus inc.2.3B mcap
55Q - 22
PCTYPaylocity Holding Corporation6.1B mcap
55Q - 23
ZMZoom Communications, Inc.31.1B mcap
55Q - 24
CRMSalesforce, Inc.171.1B mcap
54Q - 25
YALAYalla Group Limited957M mcap
54Q - 26
BLKBBlackbaud, Inc.1.4B mcap
54Q - 27
RDVTRed Violet, Inc.714M mcap
54Q - 28
BLBlackLine, Inc.1.7B mcap
53Q - 29
OPFIOppFi Inc.696M mcap
52Q - 30
PRGSProgress Software Corporation1.3B mcap
52Q - 31
DCBODocebo Inc.501M mcap
52Q - 32
UBERUber Technologies, Inc.146.2B mcap
51Q - 33
MNDYmonday.com Ltd.4.1B mcap
51Q - 34
OTEXOpen Text Corporation5.7B mcap
51Q - 35
NICENICE Ltd.5.5B mcap
51Q - 36
AGYSAgilysys, Inc.2.2B mcap
51Q - 37
PDPagerDuty, Inc.657M mcap
50Q - 38
ADEAAdeia Inc.3.0B mcap
50Q - 39
DAVEDave Inc.3.1B mcap
50Q - 40
MITKMitek Systems, Inc.724M mcap
50Q - 41
RNGRingCentral, Inc.3.8B mcap
49Q - 42
WLTHWealthfront Corporation1.8B mcap
49Q - 43
DOCUDocuSign, Inc.9.6B mcap
49Q - 44
WDAYWorkday, Inc.33.6B mcap
49Q - 45
SSNCSS&C Technologies Holdings, Inc.16.1B mcap
49Q - 46
ALRMAlarm.com Holdings, Inc.2.2B mcap
49Q - 47
HUBSHubSpot, Inc.10.3B mcap
48Q - 48
APPFAppFolio, Inc.5.9B mcap
48Q - 49
QTWOQ2 Holdings, Inc.2.9B mcap
48Q - 50
VTEXVtex634M mcap
47Q
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Key terms in this analysis
Educational framework analysis only. Not investment advice, not a recommendation, not personalized to your situation. Always do your own research.