Head to Head Survey: Twilio (NYSE:TWLO) and Fujitsu (OTCMKTS:FJTSY)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Twilio	$5.07 billion	6.71	$33.83 million	$7.95	27.63
Fujitsu	$23.27 billion	1.65	$2.97 billion	$0.62	35.34

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

Risk and Volatility

Twilio has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, Fujitsu has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Twilio and Fujitsu, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Twilio	1	3	21	2	2.89
Fujitsu	0	2	0	1	2.67

Twilio currently has a consensus target price of $269.48, indicating a potential upside of 22.69%. Given Twilio’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Twilio is more favorable than Fujitsu.

Institutional & Insider Ownership

84.3% of Twilio shares are owned by institutional investors. Comparatively, 0.1% of Fujitsu shares are owned by institutional investors. 0.2% of Twilio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Twilio	21.82%	5.58%	4.56%
Fujitsu	N/A	N/A	N/A

Summary

Twilio beats Fujitsu on 12 of the 14 factors compared between the two stocks.

About Twilio

Twilio provides cloud-based communications software that enables businesses to communicate with customers through applications and digital channels. Its platform offers APIs and related tools for integrating messaging, voice, video and email capabilities into software and customer workflows. Its offerings include programmable communications products, the Twilio Flex contact center platform, SendGrid email services, and Segment, a customer data platform. Twilio also provides tools for customer identity verification and engagement, helping organizations manage communications and customer data across their operations.

About Fujitsu

Fujitsu Limited is a Japanese information and communications technology company that provides technology products, services and solutions to businesses and public-sector organizations. Its offerings include IT consulting, systems integration, cloud services, artificial intelligence, cybersecurity and other digital transformation services, as well as computing, storage and network products. Founded in 1935 as Fuji Tsushinki Seizo, the company initially made telecommunications equipment and later expanded into computers and a broad range of information technology services.