Twilio (NYSE: TWLO) is one of 65 publicly-traded companies in the “Application Software” industry, but how does it compare to its peers? We will compare Twilio to similar businesses based on the strength of its analyst recommendations, valuation, risk, institutional ownership, dividends, earnings and profitability.

Insider & Institutional Ownership

58.1% of Twilio shares are held by institutional investors. Comparatively, 68.6% of shares of all “Application Software” companies are held by institutional investors. 15.7% of shares of all “Application Software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Twilio has a beta of 3.25, meaning that its stock price is 225% more volatile than the S&P 500. Comparatively, Twilio’s peers have a beta of 1.60, meaning that their average stock price is 60% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Twilio and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twilio 1 2 14 0 2.76
Twilio Competitors 245 1698 2924 109 2.58

Twilio currently has a consensus target price of $38.13, indicating a potential upside of 23.53%. As a group, “Application Software” companies have a potential upside of 6.84%. Given Twilio’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Twilio is more favorable than its peers.

Profitability

This table compares Twilio and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twilio -13.42% -15.40% -12.25%
Twilio Competitors -61.96% -91.59% -16.12%

Earnings & Valuation

This table compares Twilio and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Twilio $336.73 million -$34.74 million -59.37
Twilio Competitors $761.43 million $137.66 million -11.38

Twilio’s peers have higher revenue and earnings than Twilio. Twilio is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Twilio beats its peers on 7 of the 12 factors compared.

About Twilio

Twilio Inc. offers Cloud Communications Platform, which enables developers to build, scale and operate real-time communications within software applications. The Company’s platform consists of Programmable Communications Cloud, Super Network and Business Model for Innovators. Its Programmable Communications Cloud software enables developers to embed voice, messaging, video and authentication capabilities into their applications through its Application Programming Interfaces (APIs). Its Programmable Communications Cloud offers building blocks that enable its customers to build what they need. Its Programmable Communications Cloud includes Programmable Voice, Programmable Messaging, Programmable Video and Use Case APIs. The Super Network is its software layer that allows its customers’ software to communicate with connected devices globally. It interconnects with communications networks around the world.

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