Cognyte Software (NASDAQ:CGNT – Get Free Report) and Freshworks (NASDAQ:FRSH – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.
Risk and Volatility
Cognyte Software has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, Freshworks has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.
Insider & Institutional Ownership
72.9% of Cognyte Software shares are held by institutional investors. Comparatively, 75.6% of Freshworks shares are held by institutional investors. 62.7% of Cognyte Software shares are held by insiders. Comparatively, 11.2% 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.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Cognyte Software | -1.20% | -2.05% | -0.91% |
| Freshworks | -3.65% | -0.37% | -0.25% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Cognyte Software and Freshworks, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cognyte Software | 1 | 2 | 1 | 0 | 2.00 |
| Freshworks | 1 | 7 | 7 | 0 | 2.40 |
Cognyte Software currently has a consensus price target of $14.00, indicating a potential upside of 75.44%. Freshworks has a consensus price target of $19.23, indicating a potential upside of 65.07%. Given Cognyte Software’s higher possible upside, analysts clearly believe Cognyte Software is more favorable than Freshworks.
Earnings & Valuation
This table compares Cognyte Software and Freshworks”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cognyte Software | $376.57 million | 1.55 | -$12.05 million | ($0.06) | -133.00 |
| Freshworks | $810.64 million | 4.05 | -$95.37 million | ($0.10) | -116.50 |
Cognyte Software has higher earnings, but lower revenue than Freshworks. Cognyte Software is trading at a lower price-to-earnings ratio than Freshworks, indicating that it is currently the more affordable of the two stocks.
Summary
Freshworks beats Cognyte Software on 8 of the 14 factors compared between the two stocks.
About Cognyte Software
Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide. Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations. The company offers network intelligence analytics, threat intelligence analytics, decision intelligence analytics, and operational intelligence analytics solutions. Its solutions are designed to support various use cases and support a range of users, including data analysts, investigation managers, and security operations center operators, as well as operational field teams. In addition, the company provides customer support, professional, and integration services. Its government customers include national, regional, and local government agencies. Cognyte Software Ltd. was incorporated in 2020 and is headquartered in Herzliya, Israel.
About Freshworks
Freshworks Inc., a software development company, provides software-as-a-service products worldwide. It offers Freshworks Customer Service Suite, which provides automated, personalized self-service on various channels, including web, chat, mobile messaging, email, and social; Freshdesk, a ticketing-centric customer service solution; Freshsuccess, a customer success solution; and Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels. The company also provides Freshsales, an advanced and user-friendly sales automation solution; Freshmarketer, a marketing automation solution for businesses to redefine their marketing strategies; Freshsales Suite, which offers businesses a unified platform that facilitates cohesive engagement and detailed tracking of customers throughout their entire buying journey; Freshservice that offers virtual agents to help employees resolve issues, make requests, and answer questions without contacting the service desk; and Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data. In addition, it offers Freshping to monitor website’s availability and get multichannel alerts if the website goes down; Freshstatus, which allows businesses to create a custom branded website status page for internal or external viewing to communicate website uptime and availability; and Freshsurvey to measure net promoter scores and other satisfaction metrics directly within Freshworks products. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.
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