10 Best Proptech for February 2026
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Market Overview & Selection Criteria
The proptech sector, encompassing property technology innovations like real estate platforms, mapping tools, and modular construction solutions, shows mixed performance amid housing market volatility and digital transformation trends. Value Sense analysis highlights companies with strong revenue growth, high free cash flow margins, and attractive intrinsic value estimates relative to market caps, even as 1Y returns vary widely from -45.7% to +66.3%. These 10 best proptech stock picks were selected using Value Sense's machine learning-driven screener focusing on Quality rating above 5.0, positive free cash flow where possible, ROIC above 10% for leaders, and undervaluation signals from intrinsic value comparisons. This methodology prioritizes fundamentally sound businesses in proptech for educational analysis, drawing from automated fundamental metrics like gross margins over 50% and low debt where feasible.
Featured Stock Analysis
Stock #1: Garmin Ltd. (GRMN)
| Metric | Value |
|---|---|
| Market Cap | $38.8B |
| Quality Rating | 6.8 |
| Intrinsic Value | $202.7 |
| 1Y Return | -7.1% |
| Revenue | $6,943.1M |
| Free Cash Flow | $907.4M |
| Revenue Growth | 16.6% |
| FCF margin | 13.1% |
| Gross margin | 58.7% |
| ROIC | 30.4% |
| Total Debt to Equity | 1.8% |
Investment Thesis
Garmin Ltd. (GRMN) stands out in the proptech and consumer tech space with a Quality rating of 6.8 and an intrinsic value of $202.7, suggesting significant undervaluation for long-term analysis. The company reports robust Revenue of $6,943.1M, up 16.6% year-over-year, supported by Free Cash Flow of $907.4M and a healthy FCF margin of 13.1%. Exceptional ROIC at 30.4% and Gross margin of 58.7% underscore efficient capital allocation, while minimal Total Debt to Equity of 1.8% provides financial stability. Despite a -7.1% 1Y return and $38.8B market cap, these metrics position GRMN as a high-quality pick for investors examining aviation, marine, and fitness mapping technologies in proptech ecosystems.
Key financials like strong revenue growth and top-tier ROIC highlight Garmin's ability to generate shareholder value through innovation in GPS and wearable tech applicable to real estate and logistics.
Key Catalysts
- 16.6% revenue growth driving scalable operations
- 30.4% ROIC indicating superior capital efficiency
- $907.4M free cash flow enabling reinvestment and dividends
- 58.7% gross margin supporting pricing power in niche markets
Risk Factors
- -7.1% 1Y return amid market rotations away from tech hardware
- Dependence on consumer spending cycles in fitness and auto segments
- Potential competition in mapping tech from larger players
Stock #2: Zillow Group, Inc. Class C (Z)
| Metric | Value |
|---|---|
| Market Cap | $15.3B |
| Quality Rating | 5.5 |
| Intrinsic Value | $103.5 |
| 1Y Return | -24.9% |
| Revenue | $2,483.0M |
| Free Cash Flow | $272.0M |
| Revenue Growth | 15.2% |
| FCF margin | 11.0% |
| Gross margin | 74.9% |
| ROIC | (2.5%) |
| Total Debt to Equity | 1.9% |
Investment Thesis
Zillow Group, Inc. Class C (Z) offers proptech exposure through its real estate marketplace, with a Quality rating of 5.5 and intrinsic value of $103.5 against a $15.3B market cap. Revenue reached $2,483.0M with 15.2% growth, backed by Free Cash Flow of $272.0M and FCF margin of 11.0%. High Gross margin of 74.9% reflects platform efficiencies, though ROIC at -2.5% and Total Debt to Equity of 1.9% signal areas for improvement. A -24.9% 1Y return presents an educational case for recovery potential in housing data and rentals amid digital real estate shifts.
Key Catalysts
- 15.2% revenue growth from expanded listings and rentals
- 74.9% gross margin leveraging network effects
- $272.0M free cash flow for tech investments
- Low 1.9% debt supporting balance sheet flexibility
Risk Factors
- Negative ROIC of -2.5% indicating capital inefficiencies
- -24.9% 1Y return tied to housing market slowdowns
- Regulatory risks in real estate advertising
Stock #3: Bentley Systems, Incorporated (BSY)
| Metric | Value |
|---|---|
| Market Cap | $11.1B |
| Quality Rating | 6.5 |
| Intrinsic Value | $31.2 |
| 1Y Return | -23.5% |
| Revenue | $1,460.0M |
| Free Cash Flow | $460.1M |
| Revenue Growth | 11.1% |
| FCF margin | 31.5% |
| Gross margin | 81.2% |
| ROIC | 11.2% |
| Total Debt to Equity | 107.4% |
Investment Thesis
Bentley Systems, Incorporated (BSY) delivers infrastructure software for proptech applications, earning a Quality rating of 6.5 and intrinsic value of $31.2 for its $11.1B market cap. Revenue of $1,460.0M grew 11.1%, with standout Free Cash Flow of $460.1M and FCF margin of 31.5%. Gross margin at 81.2% and ROIC of 11.2% demonstrate SaaS strength, despite 107.4% Total Debt to Equity and -23.5% 1Y return. This profile suits analysis of digital twins in construction and real estate planning.
Key Catalysts
- 31.5% FCF margin highlighting cash generation prowess
- 81.2% gross margin from subscription model
- 11.1% revenue growth in infrastructure digitization
- 11.2% ROIC for steady returns
Risk Factors
- High 107.4% debt-to-equity ratio increasing leverage risk
- -23.5% 1Y return from sector headwinds
- Subscription churn in economic downturns
Stock #4: Compass, Inc. (COMP)
| Metric | Value |
|---|---|
| Market Cap | $6,980.3M |
| Quality Rating | 5.3 |
| Intrinsic Value | $51.8 |
| 1Y Return | 66.3% |
| Revenue | $6,642.2M |
| Free Cash Flow | $187.8M |
| Revenue Growth | 24.3% |
| FCF margin | 2.8% |
| Gross margin | 18.2% |
| ROIC | (4.3%) |
| Total Debt to Equity | 58.1% |
Investment Thesis
Compass, Inc. (COMP) powers real estate agents with tech, showing a Quality rating of 5.3 and intrinsic value of $51.8 versus $6,980.3M market cap. Explosive Revenue of $6,642.2M surged 24.3%, generating Free Cash Flow of $187.8M at 2.8% FCF margin. Gross margin of 18.2% and negative ROIC of -4.3% reflect scaling challenges, with 58.1% Total Debt to Equity. Strong 66.3% 1Y return underscores momentum in brokerage tech.
Key Catalysts
- 24.3% revenue growth from agent platform adoption
- 66.3% 1Y return signaling market traction
- $187.8M free cash flow turning positive
- Expanding U.S. real estate tech footprint
Risk Factors
- Low 2.8% FCF margin limiting profitability
- Negative -4.3% ROIC from high growth costs
- 58.1% debt amid commission volatility
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Stock #5: AppFolio, Inc. (APPF)
| Metric | Value |
|---|---|
| Market Cap | $6,827.8M |
| Quality Rating | 6.9 |
| Intrinsic Value | $152.2 |
| 1Y Return | -25.1% |
| Revenue | $702.6M |
| Free Cash Flow | $239.0M |
| Revenue Growth | (11.5%) |
| FCF margin | 34.0% |
| Gross margin | 50.9% |
| ROIC | 64.0% |
| Total Debt to Equity | 6.1% |
Investment Thesis
AppFolio, Inc. (APPF) provides property management software, with top Quality rating of 6.9 and intrinsic value $152.2 for $6,827.8M market cap. Revenue of $702.6M faced -11.5% growth, but Free Cash Flow hit $239.0M at 34.0% FCF margin. Stellar ROIC of 64.0% and Gross margin 50.9% shine, with low 6.1% Total Debt to Equity, despite -25.1% 1Y return.
Key Catalysts
- 64.0% ROIC driving exceptional efficiency
- 34.0% FCF margin for strong cash flows
- Low 6.1% debt enabling agility
- SaaS model for rental property tech
Risk Factors
- -11.5% revenue contraction signaling slowdown
- -25.1% 1Y return from growth deceleration
- Competition in property mgmt software
Stock #6: Frontdoor, Inc. (FTDR)
| Metric | Value |
|---|---|
| Market Cap | $4,329.0M |
| Quality Rating | 8.0 |
| Intrinsic Value | $58.8 |
| 1Y Return | -4.5% |
| Revenue | $2,042.0M |
| Free Cash Flow | $346.0M |
| Revenue Growth | 11.8% |
| FCF margin | 16.9% |
| Gross margin | 54.8% |
| ROIC | 29.0% |
| Total Debt to Equity | 379.1% |
Investment Thesis
Frontdoor, Inc. (FTDR) offers home service plans with peak Quality rating 8.0 and intrinsic value $58.8 against $4,329.0M market cap. Revenue $2,042.0M grew 11.8%, yielding Free Cash Flow $346.0M at 16.9% FCF margin. ROIC 29.0% and Gross margin 54.8% impress, though 379.1% Total Debt to Equity warrants scrutiny; -4.5% 1Y return.
Key Catalysts
- Highest 8.0 Quality rating in selection
- 29.0% ROIC for home warranty expansion
- 16.9% FCF margin supporting debt service
- 11.8% revenue growth in services
Risk Factors
- Elevated 379.1% debt-to-equity burden
- -4.5% 1Y return amid housing pressures
- Claims volatility in warranties
Stock #7: The RealReal, Inc. (REAL)
| Metric | Value |
|---|---|
| Market Cap | $4,304.0M |
| Quality Rating | 5.0 |
| Intrinsic Value | $0.7 |
| 1Y Return | 57.9% |
| Revenue | $662.8M |
| Free Cash Flow | ($11.5M) |
| Revenue Growth | 14.3% |
| FCF margin | (1.7%) |
| Gross margin | 74.5% |
| ROIC | (17.3%) |
| Total Debt to Equity | (121.6%) |
Investment Thesis
The RealReal, Inc. (REAL) focuses on luxury resale with Quality rating 5.0 and intrinsic value $0.7 for $4,304.0M market cap. Revenue $662.8M up 14.3%, but Free Cash Flow negative at -$11.5M and FCF margin -1.7%. Gross margin 74.5% aids, yet ROIC -17.3% and negative Total Debt to Equity -121.6% highlight distress; 57.9% 1Y return volatile.
Key Catalysts
- 14.3% revenue growth in luxury proptech resale
- 74.5% gross margin from authentication moat
- 57.9% 1Y return momentum
- E-commerce expansion potential
Risk Factors
- Negative free cash flow and -1.7% margin
- Poor -17.3% ROIC
- Negative equity signaling financial strain
Stock #8: WillScot Holdings Corporation (WSC)
| Metric | Value |
|---|---|
| Market Cap | $3,611.0M |
| Quality Rating | 7.1 |
| Intrinsic Value | $21.1 |
| 1Y Return | -45.7% |
| Revenue | $2,318.0M |
| Free Cash Flow | $690.7M |
| Revenue Growth | (3.6%) |
| FCF margin | 29.8% |
| Gross margin | 51.3% |
| ROIC | 10.9% |
| Total Debt to Equity | 706.2% |
Investment Thesis
WillScot Holdings Corporation (WSC) leads in modular space with Quality rating 7.1 and intrinsic value $21.1 for $3,611.0M market cap. Revenue $2,318.0M dipped -3.6%, but Free Cash Flow $690.7M at 29.8% FCF margin excels. ROIC 10.9% and Gross margin 51.3%; high 706.2% Total Debt to Equity and -45.7% 1Y return.
Key Catalysts
- 29.8% FCF margin powering operations
- $690.7M free cash flow strength
- 10.9% ROIC in mobile infrastructure
- Modular construction demand
Risk Factors
- Extreme 706.2% debt load
- -45.7% 1Y return decline
- -3.6% revenue contraction
Stock #9: EverCommerce Inc. (EVCM)
| Metric | Value |
|---|---|
| Market Cap | $2,182.6M |
| Quality Rating | 6.1 |
| Intrinsic Value | $22.2 |
| 1Y Return | 19.4% |
| Revenue | $612.8M |
| Free Cash Flow | $132.0M |
| Revenue Growth | (11.6%) |
| FCF margin | 21.5% |
| Gross margin | 73.0% |
| ROIC | 3.4% |
| Total Debt to Equity | 0.8% |
Investment Thesis
EverCommerce Inc. (EVCM) provides field service software with Quality rating 6.1 and intrinsic value $22.2 for $2,182.6M market cap. Revenue $612.8M down -11.6%, Free Cash Flow $132.0M at 21.5% FCF margin. Gross margin 73.0%, ROIC 3.4%, low 0.8% Total Debt to Equity; 19.4% 1Y return positive.
Key Catalysts
- 21.5% FCF margin resilience
- Minimal 0.8% debt advantage
- 73.0% gross margin in SaaS
- Service commerce recovery
Risk Factors
- -11.6% revenue decline
- Modest 3.4% ROIC
- Acquisition integration risks
Stock #10: Soho House & Co Inc. (SHCO)
| Metric | Value |
|---|---|
| Market Cap | $1,756.2M |
| Quality Rating | 5.4 |
| Intrinsic Value | $10.0 |
| 1Y Return | 22.0% |
| Revenue | $1,285.6M |
| Free Cash Flow | $17.8M |
| Revenue Growth | 7.8% |
| FCF margin | 1.4% |
| Gross margin | (5.4%) |
| ROIC | 0.4% |
| Total Debt to Equity | (455.5%) |
Investment Thesis
Soho House & Co Inc. (SHCO) operates luxury clubs with Quality rating 5.4 and intrinsic value $10.0 for $1,756.2M market cap. Revenue $1,285.6M grew 7.8%, Free Cash Flow $17.8M at 1.4% FCF margin. Negative Gross margin -5.4%, ROIC 0.4%, Total Debt to Equity -455.5%; 22.0% 1Y return.
Key Catalysts
- 7.8% revenue growth in memberships
- 22.0% 1Y return upside
- Global club network expansion
- Premium lifestyle proptech angle
Risk Factors
- Negative -5.4% gross margin
- Low 1.4% FCF margin
- Severe negative equity position
Portfolio Diversification Insights
These proptech stock picks cluster around real estate tech (Z, COMP, APPF), infrastructure/software (GRMN, BSY), services/modular (FTDR, WSC, EVCM), and niche resale/luxury (REAL, SHCO), offering sector allocation: 40% real estate platforms, 30% construction/infra, 20% services, 10% luxury. High-quality leaders like FTDR (8.0 rating) balance lower-rated growth plays like REAL 5.0, with average ROIC ~15% and FCF margins ~15%. Low-debt names (GRMN, EVCM) offset leveraged ones (WSC, FTDR), reducing correlation risks in housing cycles while capturing digital transformation themes.
Market Timing & Entry Strategies
Consider positions during proptech dips, such as post-housing data releases or when 1Y returns lag (e.g., GRMN -7.1%, APPF -25.1%), aligning with Value Sense intrinsic value gaps. Scale in on revenue growth confirmations above 10%, monitoring ROIC trends for quality. Use dollar-cost averaging for volatile picks like COMP (66.3% 1Y), targeting FCF-positive quarters; educational backtesting on Value Sense can validate entry amid interest rate shifts.
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FAQ Section
How were these stocks selected?
These 10 best proptech stock picks were curated via Value Sense's screener emphasizing Quality rating >5.0, strong FCF margins, revenue growth, and intrinsic value undervaluation, focusing on proptech themes for diversified educational analysis.
What's the best stock from this list?
Frontdoor, Inc. (FTDR) leads with the highest Quality rating of 8.0, 29.0% ROIC, and 16.9% FCF margin, making it a standout for fundamental strength in this proptech stock watchlist.
Should I buy all these stocks or diversify?
Diversification across proptech subsectors (platforms, infra, services) reduces risks like housing volatility; allocate based on quality scores and debt levels rather than concentrating in high-flyers like COMP.
What are the biggest risks with these picks?
Key concerns include high debt (e.g., WSC 706.2%), negative ROIC (Z, COMP), and revenue contractions (APPF, EVCM), alongside sector sensitivity to real estate cycles and interest rates.
When is the best time to invest in these stocks?
Optimal timing aligns with undervaluation vs. intrinsic values (e.g., GRMN at $202.7), post-earnings beats on growth metrics, or broader market rotations into value proptech plays.