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 Corporation29.0B mcap
85Q - 2
CDNSCadence Design Systems, Inc.103.4B mcap
78Q - 3
NPNeptune Insurance Holdings Inc.3.9B mcap
78Q - 4
APPAppLovin Corporation206.0B mcap
76Q - 5TXT.WAText S.A.
1.1B mcap
74Q - 6TMV.DETeamViewer SE
926M mcap
74Q - 7
DSGXThe Descartes Systems Group Inc.6.3B mcap
73Q - 8
ADSKAutodesk, Inc.48.8B mcap
72Q - 9NEM.DENemetschek SE
7.1B mcap
72Q - 10
BSYBentley Systems, Incorporated9.9B mcap
69Q - 11
INTUIntuit Inc.90.7B mcap
68Q - 12
KAROKarooooo Ltd.1.5B mcap
68Q - 13
GRNDGrindr Inc.2.2B mcap
68Q - 14
ADBEAdobe Inc.104.8B mcap
67Q - 15SGE.LThe Sage Group plc
7.6B mcap
66Q - 16
NOWServiceNow, Inc.128.3B mcap
63Q - 17
PTCPTC Inc.16.0B mcap
62Q - 18
IDCCInterDigital, Inc.6.5B mcap
62Q - 19
PAYCPaycom Software, Inc.6.5B mcap
61Q - 20
MANHManhattan Associates, Inc.8.9B mcap
61Q - 213697.TSHIFT Inc.
179.4B mcap
61Q - 22SAP.DESAP SE
181.3B mcap
61Q - 23
CVLTCommvault Systems, Inc.4.9B mcap
60Q - 24
TYLTyler Technologies, Inc.12.9B mcap
59Q - 25
DVDoubleVerify Holdings, Inc.1.5B mcap
57Q - 26
YOUClear Secure, Inc.7.4B mcap
57Q - 27
PLUSePlus inc.2.1B mcap
55Q - 28
PCTYPaylocity Holding Corporation6.2B mcap
55Q - 29
CRMSalesforce, Inc.156.5B mcap
54Q - 30
RDVTRed Violet, Inc.802M mcap
54Q - 31
BLKBBlackbaud, Inc.1.4B mcap
54Q - 32
YALAYalla Group Limited887M mcap
54Q - 33
ZMZoom Communications, Inc.29.8B mcap
53Q - 34
BLBlackLine, Inc.1.7B mcap
53Q - 35
PRGSProgress Software Corporation1.4B mcap
52Q - 36
OPFIOppFi Inc.1.2B mcap
52Q - 37
NICENICE Ltd.5.4B mcap
51Q - 38
MNDYmonday.com Ltd.4.3B mcap
51Q - 39
AGYSAgilysys, Inc.2.4B mcap
51Q - 40
OTEXOpen Text Corporation5.8B mcap
51Q - 41
PDPagerDuty, Inc.767M mcap
50Q - 42
DAVEDave Inc.3.6B mcap
50Q - 43
DOCUDocuSign, Inc.10.2B mcap
50Q - 44
ADEAAdeia Inc.2.9B mcap
50Q - 45
MITKMitek Systems, Inc.776M mcap
50Q - 46
SSNCSS&C Technologies Holdings, Inc.16.3B mcap
49Q - 47
WDAYWorkday, Inc.36.1B mcap
49Q - 48
RNGRingCentral, Inc.3.6B mcap
49Q - 49
ALRMAlarm.com Holdings, Inc.2.2B mcap
49Q - 50
DUOLDuolingo, Inc.5.2B mcap
49Q
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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.