Perfect (NYSE:PERF) versus Twilio (NYSE:TWLO) Critical Review

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Perfect and Twilio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perfect	1	2	0	0	1.67
Twilio	1	3	17	2	2.87

Twilio has a consensus target price of $193.65, indicating a potential downside of 2.37%. Given Twilio’s stronger consensus rating and higher possible upside, analysts plainly believe Twilio is more favorable than Perfect.

Institutional & Insider Ownership

84.3% of Twilio shares are owned by institutional investors. 0.2% of Twilio shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Perfect and Twilio”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perfect	$69.15 million	2.53	$4.64 million	$0.05	34.39
Twilio	$5.07 billion	5.94	$33.83 million	$0.64	309.93

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

Volatility & Risk

Perfect has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Twilio has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Perfect	6.62%	3.02%	2.40%
Twilio	1.96%	4.64%	3.76%

Summary

Twilio beats Perfect on 14 of the 15 factors compared between the two stocks.

About Perfect

Perfect Corp. is a software as a service technology company, which engages in the business of developing makeup virtual try-on solutions. Its solutions include virtual try-ons for makeup, nail art, hairstyles, beard dye and styling, eyewear, jewelry, advanced skin diagnostic technology, foundation shade finder, and interactive artificial reality makeup application tutorial platform. Its brands include Estée Lauder, Clinique, MAC, e.l.e., benefit, Sally Hansen, Belcorp, Decorté, NARS, Aveda, Madisonreed, kate, Sofina iP, Jillstuart, Cosnova, Beekman, Marianna, Ardell, tarte, and Coffret D’or. It operates through the following geographical segments: United States, Japan, France, and Others. The company was founded by Alice H. Chang on February 13, 2015 and is headquartered in New Taipei, Taiwan.

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.