Freshworks (NASDAQ:FRSH) vs. Grab (NASDAQ:GRAB) Head to Head Survey

Grab (NASDAQ:GRAB) and Freshworks (NASDAQ:FRSH) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

55.5% of Grab shares are held by institutional investors. Comparatively, 75.6% of Freshworks shares are held by institutional investors. 3.6% of Grab shares are held by company insiders. Comparatively, 8.5% of Freshworks shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Grab and Freshworks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grab	$3.37 billion	4.34	$268.00 million	$0.01	357.00
Freshworks	$838.81 million	3.59	$183.72 million	$0.62	17.56

Grab has higher revenue and earnings than Freshworks. Freshworks is trading at a lower price-to-earnings ratio than Grab, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Grab has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Freshworks has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grab	10.67%	5.79%	3.28%
Freshworks	20.69%	4.27%	2.74%

Analyst Ratings

This is a summary of recent ratings and target prices for Grab and Freshworks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grab	0	2	8	1	2.91
Freshworks	1	8	6	0	2.33

Grab currently has a consensus price target of $6.01, indicating a potential upside of 68.22%. Freshworks has a consensus price target of $12.18, indicating a potential upside of 11.86%. Given Grab’s stronger consensus rating and higher possible upside, equities analysts plainly believe Grab is more favorable than Freshworks.

Summary

Grab beats Freshworks on 10 of the 15 factors compared between the two stocks.

About Grab

Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.

About Freshworks

Freshworks Inc., a software development company, provides software-as-a-service products worldwide. It offers Freshworks Customer Service Suite, which provides automated, personalized self-service on various channels, including web, chat, mobile messaging, email, and social; Freshdesk, a ticketing-centric customer service solution; Freshsuccess, a customer success solution; and Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels. The company also provides Freshsales, an advanced and user-friendly sales automation solution; Freshmarketer, a marketing automation solution for businesses to redefine their marketing strategies; Freshsales Suite, which offers businesses a unified platform that facilitates cohesive engagement and detailed tracking of customers throughout their entire buying journey; Freshservice that offers virtual agents to help employees resolve issues, make requests, and answer questions without contacting the service desk; and Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data. In addition, it offers Freshping to monitor website’s availability and get multichannel alerts if the website goes down; Freshstatus, which allows businesses to create a custom branded website status page for internal or external viewing to communicate website uptime and availability; and Freshsurvey to measure net promoter scores and other satisfaction metrics directly within Freshworks products. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.