Critical Comparison: Freshworks (NASDAQ:FRSH) and SouthPeak Interactive (OTCMKTS:SOPK)

Freshworks (NASDAQ:FRSH – Get Rating) and SouthPeak Interactive (OTCMKTS:SOPK – Get Rating) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Freshworks and SouthPeak Interactive, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freshworks	0	7	7	0	2.50
SouthPeak Interactive	0	0	0	0	N/A

Freshworks presently has a consensus target price of $17.90, suggesting a potential upside of 30.37%.

Profitability

This table compares Freshworks and SouthPeak Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freshworks	-46.61%	-21.13%	-16.49%
SouthPeak Interactive	N/A	N/A	N/A

Earnings & Valuation

This table compares Freshworks and SouthPeak Interactive’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freshworks	$498.00 million	8.00	-$232.13 million	($0.81)	-16.95
SouthPeak Interactive	N/A	N/A	N/A	N/A	N/A

SouthPeak Interactive has lower revenue, but higher earnings than Freshworks.

Institutional & Insider Ownership

46.4% of Freshworks shares are owned by institutional investors. 29.1% of Freshworks shares are owned by insiders. Comparatively, 45.6% of SouthPeak Interactive shares are owned by 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 and Volatility

Freshworks has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, SouthPeak Interactive has a beta of 3.19, indicating that its stock price is 219% more volatile than the S&P 500.

Summary

SouthPeak Interactive beats Freshworks on 5 of the 8 factors compared between the two stocks.

About Freshworks

(Get Rating)

Freshworks Inc., a software development company, provides modern software-as-a-service products worldwide. Freshworks Inc. was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. The company was incorporated in 2010 and is headquartered in San Mateo, California.

About SouthPeak Interactive

(Get Rating)

SouthPeak Interactive Corp. is used to operate as an independent developer and publisher of interactive entertainment software. It develops, markets and publishes videogames for all gaming and entertainment hardware platforms, including home videogame consoles. The company was founded in 1996 and is headquartered in Midlothian, VA.