Reviewing CLPS Incorporation (NASDAQ:CLPS) & Twilio (NYSE:TWLO)

CLPS Incorporation (NASDAQ:CLPS) and Twilio (NYSE:TWLO) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for CLPS Incorporation and Twilio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CLPS Incorporation	0	0	0	0	0.00
Twilio	1	7	16	1	2.68

Twilio has a consensus target price of $125.35, indicating a potential upside of 3.13%. Given Twilio’s stronger consensus rating and higher probable upside, analysts plainly believe Twilio is more favorable than CLPS Incorporation.

Earnings & Valuation

This table compares CLPS Incorporation and Twilio”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CLPS Incorporation	$153.82 million	0.18	-$2.33 million	N/A	N/A
Twilio	$4.58 billion	4.05	-$109.40 million	($0.21)	-578.76

CLPS Incorporation has higher earnings, but lower revenue than Twilio.

Insider and Institutional Ownership

0.2% of CLPS Incorporation shares are owned by institutional investors. Comparatively, 84.3% of Twilio shares are owned by institutional investors. 58.7% of CLPS Incorporation shares are owned by company insiders. Comparatively, 0.2% of Twilio shares are owned by company 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.

Profitability

This table compares CLPS Incorporation and Twilio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CLPS Incorporation	N/A	N/A	N/A
Twilio	-2.45%	1.38%	1.14%

Risk & Volatility

CLPS Incorporation has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Twilio has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.

Summary

Twilio beats CLPS Incorporation on 10 of the 13 factors compared between the two stocks.

About CLPS Incorporation

CLPS Incorporation provides information technology (IT), consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT services to its clients in the banking, wealth management, e-commerce, and automotive industries; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting; and fee-for-service training services, as well as sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.

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.