Comparing Freshworks (FRSH) and Its Rivals

Freshworks (NASDAQ:FRSHGet Rating) is one of 411 publicly-traded companies in the “Prepackaged software” industry, but how does it contrast to its rivals? We will compare Freshworks to similar businesses based on the strength of its profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Freshworks and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freshworks 0 4 5 0 2.56
Freshworks Competitors 1644 11356 24344 530 2.63

Freshworks currently has a consensus target price of $18.23, suggesting a potential upside of 36.43%. As a group, “Prepackaged software” companies have a potential upside of 42.09%. Given Freshworks’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Freshworks has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

31.3% of Freshworks shares are held by institutional investors. Comparatively, 55.2% of shares of all “Prepackaged software” companies are held by institutional investors. 29.1% of Freshworks shares are held by company insiders. Comparatively, 18.6% of shares of all “Prepackaged software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Freshworks and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freshworks -68.69% -24.66% -20.18%
Freshworks Competitors -77.00% -84.27% -7.79%

Earnings & Valuation

This table compares Freshworks and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Freshworks $371.02 million -$191.99 million -0.53
Freshworks Competitors $1.83 billion $287.30 million 27.47

Freshworks’ rivals have higher revenue and earnings than Freshworks. Freshworks is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Freshworks rivals beat Freshworks on 9 of the 12 factors compared.

Freshworks Company Profile

(Get Rating)

Freshworks Inc., a software development company, provides modern software-as-a-service products worldwide. Freshworks Inc. was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. The company was incorporated in 2010 and is headquartered in San Mateo, California.

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