Digital Turbine (NASDAQ:APPS – Get Free Report) and Freshworks (NASDAQ:FRSH – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Profitability
This table compares Digital Turbine and Freshworks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digital Turbine | -15.93% | 2.24% | 0.44% |
| Freshworks | -7.02% | -2.56% | -1.78% |
Analyst Recommendations
This is a summary of recent recommendations for Digital Turbine and Freshworks, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digital Turbine | 1 | 2 | 1 | 0 | 2.00 |
| Freshworks | 1 | 6 | 8 | 1 | 2.56 |
Insider and Institutional Ownership
63.7% of Digital Turbine shares are owned by institutional investors. Comparatively, 75.6% of Freshworks shares are owned by institutional investors. 6.1% of Digital Turbine shares are owned by company insiders. Comparatively, 11.2% of Freshworks shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
Digital Turbine has a beta of 2.55, meaning that its stock price is 155% more volatile than the S&P 500. Comparatively, Freshworks has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
Valuation & Earnings
This table compares Digital Turbine and Freshworks”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digital Turbine | $490.51 million | 1.44 | -$92.10 million | ($0.77) | -8.19 |
| Freshworks | $720.42 million | 4.52 | -$95.37 million | ($0.18) | -62.11 |
Digital Turbine has higher earnings, but lower revenue than Freshworks. Freshworks is trading at a lower price-to-earnings ratio than Digital Turbine, indicating that it is currently the more affordable of the two stocks.
Summary
Freshworks beats Digital Turbine on 10 of the 15 factors compared between the two stocks.
About Digital Turbine
Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media. The company also provides direct campaign management products, such as the DT DSP and DT Offer Wall; ad monetization solutions allow mobile app publishers and developers to monetize their monthly active users via display, native, and video advertising; brands and agencies runs mobile brand-awareness campaigns on the direct mobile app inventory; and app developers and other performance-focused advertisers execute mobile user acquisition campaigns for their apps and products. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.
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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