Financial Analysis: Freshworks (NASDAQ:FRSH) versus MIND C.T.I. (NASDAQ:MNDO)

Freshworks (NASDAQ:FRSH – Get Free Report) and MIND C.T.I. (NASDAQ:MNDO – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Volatility & Risk

Freshworks has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, MIND C.T.I. has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Institutional & Insider Ownership

75.6% of Freshworks shares are held by institutional investors. Comparatively, 24.3% of MIND C.T.I. shares are held by institutional investors. 8.5% of Freshworks shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Freshworks and MIND C.T.I.”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Freshworks $838.81 million 3.70 $183.72 million $0.73 16.27
MIND C.T.I. $19.46 million 1.31 $2.60 million $0.16 7.88

Freshworks has higher revenue and earnings than MIND C.T.I.. MIND C.T.I. is trading at a lower price-to-earnings ratio than Freshworks, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Freshworks and MIND C.T.I.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freshworks 22.28% 8.01% 5.00%
MIND C.T.I. 16.87% 14.09% 10.90%

Analyst Ratings

This is a summary of recent recommendations for Freshworks and MIND C.T.I., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freshworks 0 7 8 2 2.71
MIND C.T.I. 1 0 0 0 1.00

Freshworks presently has a consensus price target of $15.92, suggesting a potential upside of 34.03%. Given Freshworks’ stronger consensus rating and higher probable upside, equities analysts plainly believe Freshworks is more favorable than MIND C.T.I..

Summary

Freshworks beats MIND C.T.I. on 13 of the 15 factors compared between the two stocks.

About Freshworks

(Get Free Report)

Freshworks Inc. develops cloud-based software designed to help businesses manage customer and employee experiences. Its products support customer service, sales, marketing and IT service management, with tools for handling support requests, communicating with customers and managing internal service workflows. The company’s offerings include Freshdesk for customer support, Freshservice for IT and employee service management, and Freshsales for sales teams. Freshworks also provides customer messaging and marketing products, along with artificial intelligence features that assist with service and support tasks.

About MIND C.T.I.

(Get Free Report)

MIND C.T.I. Ltd. is an Israel-based provider of software solutions for communications service providers. The company develops systems designed to support telecommunications operators with billing, customer care, service management and related operational processes. Its offerings have included solutions for prepaid and postpaid billing, rating, mediation, revenue management and customer relationship management. These tools are intended to help fixed-line, mobile, broadband and other communications providers manage subscribers, configure services, process usage data and automate charging and account-support functions.

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