Contrasting Kubient (NASDAQ:KBNT) and Freshworks (NASDAQ:FRSH)

Freshworks (NASDAQ:FRSH) and Kubient (NASDAQ:KBNT) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Freshworks and Kubient, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freshworks	0	9	6	1	2.50
Kubient	0	0	0	0	0.00

Freshworks currently has a consensus target price of $14.17, suggesting a potential upside of 6.04%. Given Freshworks’ stronger consensus rating and higher possible upside, equities analysts plainly believe Freshworks is more favorable than Kubient.

Risk & Volatility

Freshworks has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Kubient has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Insider and Institutional Ownership

75.6% of Freshworks shares are held by institutional investors. Comparatively, 13.9% of Kubient shares are held by institutional investors. 8.5% of Freshworks shares are held by company insiders. Comparatively, 22.3% of Kubient shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freshworks	$838.81 million	4.16	$183.72 million	$0.64	20.88
Kubient	$1.17 million	0.00	-$13.62 million	N/A	N/A

Freshworks has higher revenue and earnings than Kubient.

Profitability

This table compares Freshworks and Kubient’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freshworks	20.49%	5.52%	3.45%
Kubient	N/A	N/A	N/A

Summary

Freshworks beats Kubient on 12 of the 13 factors compared between the two stocks.

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.

About Kubient

Kubient, Inc. develops a cloud-based software platform for digital advertising industry. It develops Audience Marketplace, a platform for real-time trading of digital, programmatic advertising. The company's platform allows advertisers and publishers the ability to use machine learning during programmatic advertising inventory auction. The company was incorporated in 2017 and is based in New York, New York.