Agora (NASDAQ:API – Get Free Report) and Radware (NASDAQ:RDWR – Get Free Report) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.
Volatility and Risk
Agora has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Radware has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Valuation & Earnings
This table compares Agora and Radware”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Agora | $141.06 million | 2.45 | $9.53 million | $0.11 | 36.00 |
| Radware | $301.85 million | 4.37 | $20.26 million | $0.31 | 101.23 |
Radware has higher revenue and earnings than Agora. Agora is trading at a lower price-to-earnings ratio than Radware, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
40.4% of Agora shares are held by institutional investors. Comparatively, 73.1% of Radware shares are held by institutional investors. 14.6% of Agora shares are held by insiders. Comparatively, 21.6% of Radware shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for Agora and Radware, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Agora | 0 | 2 | 1 | 0 | 2.33 |
| Radware | 0 | 3 | 0 | 0 | 2.00 |
Agora presently has a consensus target price of $6.80, suggesting a potential upside of 71.72%. Radware has a consensus target price of $40.00, suggesting a potential upside of 27.47%. Given Agora’s stronger consensus rating and higher probable upside, equities analysts clearly believe Agora is more favorable than Radware.
Profitability
This table compares Agora and Radware’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Agora | 7.23% | 1.96% | 1.52% |
| Radware | 4.26% | 6.64% | 3.71% |
Summary
Radware beats Agora on 9 of the 14 factors compared between the two stocks.
About Agora
Agora, Inc. provides cloud software and developer tools for real-time engagement. Its platform offers application programming interfaces and software development kits that let businesses add voice and video communication, interactive live streaming, messaging and signaling to their applications. The company serves developers and organizations across a range of industries and markets worldwide. Its products are designed to support interactive experiences such as in-app calls, online events and real-time collaboration.
About Radware
Radware Ltd. is a cybersecurity and application delivery company founded in 1996. It provides technologies designed to protect applications and networks from cyberattacks while helping businesses maintain the availability and performance of their digital services. Its offerings include cloud and on-premises protection against distributed denial-of-service (DDoS) attacks, web application firewalls, bot management, API security and application delivery controllers. Radware also provides related services such as threat intelligence, monitoring and incident response.
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