Comparing Twilio (NYSE:TWLO) and Indra Sistemas (OTCMKTS:ISMAY)

Twilio (NYSE:TWLO) and Indra Sistemas (OTCMKTS:ISMAY) are both large-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Volatility & Risk

Twilio has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Indra Sistemas has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Insider and Institutional Ownership

84.3% of Twilio shares are owned by institutional investors. 0.2% of Twilio shares are owned by insiders. Comparatively, 0.3% of Indra Sistemas shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Twilio and Indra Sistemas”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Twilio	$5.07 billion	8.77	$33.83 million	$7.18	40.31
Indra Sistemas	$6.17 billion	1.92	$493.10 million	$1.47	22.86

Indra Sistemas has higher revenue and earnings than Twilio. Indra Sistemas is trading at a lower price-to-earnings ratio than Twilio, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Twilio and Indra Sistemas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Twilio	20.61%	5.09%	4.15%
Indra Sistemas	7.12%	22.61%	4.57%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Twilio	2	2	22	2	2.86
Indra Sistemas	0	1	1	0	2.50

Twilio currently has a consensus target price of $258.65, suggesting a potential downside of 10.64%. Given Twilio’s stronger consensus rating and higher probable upside, research analysts plainly believe Twilio is more favorable than Indra Sistemas.

Summary

Twilio beats Indra Sistemas on 10 of the 15 factors compared between the two stocks.

About Twilio

Twilio Inc., together with its subsidiaries, provides customer engagement platform solutions in the United States and internationally. It operates through two segments, Twilio Communications and Twilio Segment. The company provides various application programming interfaces and software solutions for communications between customers and end users, including messaging, voice, email, flex, marketing campaigns, and user identity and authentication. It also offers software products to build direct, personalized relationships with their end users, such as segment, a platform that provides tools for first-party data by unifying real-time information collected; and engage, an automation platform for the delivery of omnichannel campaigns. Twilio Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

About Indra Sistemas

Indra Sistemas, S.A. operates as a technology and consulting company for aerospace, defense, and mobility business worldwide. The company operates through four segments: Defence, Air Traffic, Mobility, and Minsait. It offers Mova Consulting for planing and designing transport infrastructures; Mova Collect for ticketing, tolling, and back office applications; Mova Traffic for building traffic management and control solutions; Mova Protect for protection of businesses and people; Mova Experience; Mova Comms for connecting the transportation ecosystem with personalized communication solutions; Mova Care that provides infrastructure operation and maintenance, technology operation and maintenance, and transportation services operation and maintenance; and In-Mova Space, a technological mobility and infrastructure management platform. The company also provides Indra Air Automation; Indra Air Communication; Indra Air Navigation; Indra Air Surveillance; Indra Air Drones; Indra Air Information; and Indra Air Services for air traffic applications. In addition, the company offers defence and security solutions, including Platforms, defence systems, security, cyberdefence, space technologies applied to military operations, military and civilian training solutions, and logistics and maintenance services; and other technological solutions for public administration, industry and consumption, financial services, energy, and telco and media sectors. Indra Sistemas, S.A. was founded in 1921 and is based in Alcobendas, Spain.