Freshworks (NASDAQ:FRSH – Get Free Report) is one of 953 public companies in the “Software” industry, but how does it contrast to its rivals? We will compare Freshworks to similar companies based on the strength of its risk, earnings, profitability, analyst recommendations, valuation, institutional ownership and dividends.
Earnings and Valuation
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 | 16.59 |
| Freshworks Competitors | $1.90 billion | $387.74 million | 108.86 |
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 | -607.02% | 22.93% | -8.85% |
Volatility and Risk
Freshworks has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Freshworks’ rivals have a beta of 1.34, suggesting that their average share price is 34% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Freshworks and its rivals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Freshworks | 0 | 7 | 8 | 2 | 2.71 |
| Freshworks Competitors | 5748 | 21526 | 44879 | 1497 | 2.57 |
Freshworks currently has a consensus price target of $15.92, indicating a potential upside of 31.49%. As a group, “Software” companies have a potential upside of 29.17%. Given Freshworks’ stronger consensus rating and higher possible upside, equities analysts clearly believe Freshworks is more favorable than its rivals.
Insider and Institutional Ownership
75.6% of Freshworks shares are owned by institutional investors. Comparatively, 42.0% of shares of all “Software” companies are owned by institutional investors. 8.5% of Freshworks shares are owned by company insiders. Comparatively, 20.0% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Freshworks rivals beat Freshworks on 7 of the 13 factors compared.
Freshworks Company Profile
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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