Broadridge Financial Solutions (NYSE:BR – Get Free Report) and Freshworks (NASDAQ:FRSH – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Earnings & Valuation
This table compares Broadridge Financial Solutions and Freshworks”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Broadridge Financial Solutions | $6.89 billion | 2.61 | $839.50 million | $9.03 | 17.05 |
| Freshworks | $838.81 million | 2.87 | $183.72 million | $0.64 | 13.25 |
Risk & Volatility
Broadridge Financial Solutions has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Freshworks has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and target prices for Broadridge Financial Solutions and Freshworks, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Broadridge Financial Solutions | 0 | 4 | 4 | 0 | 2.50 |
| Freshworks | 1 | 8 | 6 | 0 | 2.33 |
Broadridge Financial Solutions currently has a consensus target price of $244.14, suggesting a potential upside of 58.58%. Freshworks has a consensus target price of $12.45, suggesting a potential upside of 46.87%. Given Broadridge Financial Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Broadridge Financial Solutions is more favorable than Freshworks.
Profitability
This table compares Broadridge Financial Solutions and Freshworks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Broadridge Financial Solutions | 14.86% | 40.70% | 12.71% |
| Freshworks | 21.90% | 4.69% | 3.07% |
Institutional and Insider Ownership
90.0% of Broadridge Financial Solutions shares are held by institutional investors. Comparatively, 75.6% of Freshworks shares are held by institutional investors. 1.1% of Broadridge Financial Solutions shares are held by insiders. Comparatively, 8.5% of Freshworks shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Broadridge Financial Solutions beats Freshworks on 10 of the 14 factors compared between the two stocks.
About Broadridge Financial Solutions
Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry. The company's Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote processing services; and distributes regulatory reports, class action, and corporate action/reorganization event information, as well as tax reporting solutions. It also offers ProxyEdge, an electronic proxy delivery and voting solution; data-driven solutions and an end-to-end platform for content management, composition, and omni-channel distribution of regulatory, marketing, and transactional information, as well as mutual fund trade processing services; solutions for public corporations and mutual funds; data and analytics solutions; SEC filing and capital markets transaction services; registrar, stock transfer, and record-keeping services; and omni-channel customer communications solutions, as well as operates Broadridge Communications Cloud platform that creates, delivers, and manages communications and customer engagement activities. Its Global Technology and Operations segment provides solutions that automate the front-to-back transaction lifecycle of equity, mutual fund, fixed income, foreign exchange and exchange-traded derivatives, order capture and execution, trade confirmation, margin, cash management, clearing and settlement, reference data management, reconciliations, securities financing and collateral management, asset servicing, compliance and regulatory reporting, portfolio accounting, and custody-related services. This segment also offers business process outsourcing services; technology solutions, such portfolio management, compliance, fee billing, and operational support solutions; and capital market and wealth and investment management solutions. The company was founded in 1962 and is headquartered in Lake Success, New York.
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.
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