Freshworks (FRSH) vs. Its Competitors Head-To-Head Comparison

Freshworks (NASDAQ:FRSH) is one of 954 public companies in the “Software” industry, but how does it weigh in compared to its rivals? We will compare Freshworks to related businesses based on the strength of its risk, earnings, dividends, institutional ownership, analyst recommendations, profitability and valuation.

Institutional & Insider Ownership

75.6% of Freshworks shares are held by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are held by institutional investors. 8.5% of Freshworks shares are held by insiders. Comparatively, 19.9% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Freshworks and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Freshworks	$838.81 million	$183.72 million	16.27
Freshworks Competitors	$1.80 billion	$385.28 million	109.00

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.

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	22.28%	8.01%	5.00%
Freshworks Competitors	-607.19%	26.73%	-8.88%

Analyst Ratings

This is a breakdown of current ratings for Freshworks and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freshworks	0	7	8	2	2.71
Freshworks Competitors	5780	21582	44966	1500	2.57

Freshworks currently has a consensus target price of $15.92, indicating a potential upside of 34.03%. As a group, “Software” companies have a potential upside of 29.21%. Given Freshworks’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Freshworks is more favorable than its rivals.

Volatility and Risk

Freshworks has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Freshworks’ rivals have a beta of 1.34, suggesting that their average stock price is 34% more volatile than the S&P 500.

Summary

Freshworks rivals beat Freshworks on 7 of the 13 factors compared.

About Freshworks

Freshworks Inc. develops cloud-based software designed to help businesses manage customer and employee experiences. Its products support customer service, sales, marketing and IT service management, with tools for handling support requests, communicating with customers and managing internal service workflows. The company’s offerings include Freshdesk for customer support, Freshservice for IT and employee service management, and Freshsales for sales teams. Freshworks also provides customer messaging and marketing products, along with artificial intelligence features that assist with service and support tasks.