Freshworks (NASDAQ:FRSH – Get Free Report) and Cognyte Software (NASDAQ:CGNT – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.
Valuation & Earnings
This table compares Freshworks and Cognyte Software”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Freshworks | $810.64 million | 4.05 | -$95.37 million | ($0.10) | -116.50 |
| Cognyte Software | $376.57 million | 1.55 | -$12.05 million | ($0.06) | -133.00 |
Risk & Volatility
Freshworks has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Cognyte Software has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Freshworks and Cognyte Software, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Freshworks | 1 | 7 | 7 | 0 | 2.40 |
| Cognyte Software | 1 | 2 | 1 | 0 | 2.00 |
Freshworks currently has a consensus target price of $19.23, suggesting a potential upside of 65.07%. Cognyte Software has a consensus target price of $14.00, suggesting a potential upside of 75.44%. Given Cognyte Software’s higher possible upside, analysts plainly believe Cognyte Software is more favorable than Freshworks.
Institutional & Insider Ownership
75.6% of Freshworks shares are owned by institutional investors. Comparatively, 72.9% of Cognyte Software shares are owned by institutional investors. 11.2% of Freshworks shares are owned by insiders. Comparatively, 62.7% of Cognyte Software shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Freshworks and Cognyte Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Freshworks | -3.65% | -0.37% | -0.25% |
| Cognyte Software | -1.20% | -2.05% | -0.91% |
Summary
Freshworks beats Cognyte Software on 8 of the 14 factors compared between the two stocks.
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.
About Cognyte Software
Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide. Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations. The company offers network intelligence analytics, threat intelligence analytics, decision intelligence analytics, and operational intelligence analytics solutions. Its solutions are designed to support various use cases and support a range of users, including data analysts, investigation managers, and security operations center operators, as well as operational field teams. In addition, the company provides customer support, professional, and integration services. Its government customers include national, regional, and local government agencies. Cognyte Software Ltd. was incorporated in 2020 and is headquartered in Herzliya, Israel.
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