Kaltura (NASDAQ:KLTR – Get Free Report) and Freshworks (NASDAQ:FRSH – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Volatility & Risk
Kaltura has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Freshworks has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.
Profitability
This table compares Kaltura and Freshworks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kaltura | -10.01% | -54.84% | -6.44% |
| Freshworks | 21.90% | 4.69% | 3.07% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kaltura | $178.72 million | 1.33 | -$31.32 million | ($0.12) | -12.67 |
| Freshworks | $838.81 million | 2.90 | $183.72 million | $0.64 | 13.48 |
Freshworks has higher revenue and earnings than Kaltura. Kaltura is trading at a lower price-to-earnings ratio than Freshworks, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Kaltura and Freshworks, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kaltura | 1 | 0 | 1 | 0 | 2.00 |
| Freshworks | 1 | 8 | 7 | 0 | 2.38 |
Kaltura presently has a consensus price target of $3.00, indicating a potential upside of 97.37%. Freshworks has a consensus price target of $12.92, indicating a potential upside of 49.67%. Given Kaltura’s higher possible upside, equities analysts clearly believe Kaltura is more favorable than Freshworks.
Insider & Institutional Ownership
30.8% of Kaltura shares are owned by institutional investors. Comparatively, 75.6% of Freshworks shares are owned by institutional investors. 13.5% of Kaltura shares are owned by company insiders. Comparatively, 11.2% of Freshworks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Freshworks beats Kaltura on 11 of the 14 factors compared between the two stocks.
About Kaltura
Kaltura, Inc. provides various software-as-a-service (SaaS) products and solutions and a platform-as-a-service (PaaS) in the United States, Europe, the Middle East, Africa, and internationally. The company operates through two segments, Enterprise, Education, and Technology (EE&T); and Media and Telecom (M&T). It offers video products, such as virtual and hybrid events, webinars, video portals, online learning, and content portals for training, marketing, virtual and hybrid events, communication, collaboration, sales, and customer care; and education solutions, such as learning management system video and lecture capture solutions. The company also provides online video experiences, including for over-the-top (OTT) television, cloud TV, web video publishing, video-based teaching, learning, training, video-based marketing, and video-based collaboration. In addition, it offers application programming interfaces (APIs), software development kits, and experience components, including live, real-time and on-demand video, ingestion, transcoding, enrichment, management, distribution, engagement, monetization, and deep viewer analytics, as well as video player, video editor, video capture tool, and chat and networking widgets. The company serves a range of industries, including financial services, high technology, healthcare and pharmaceuticals, education, public sector, media, telecommunications, information technology (IT) and professional services, retail, and manufacturing. Kaltura, Inc. was incorporated in 2006 and is headquartered in New York, 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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