Pony AI (NASDAQ:PONY) vs. Radware (NASDAQ:RDWR) Financial Comparison

Pony AI (NASDAQ:PONY) and Radware (NASDAQ:RDWR) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Pony AI and Radware, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pony AI	1	2	7	0	2.60
Radware	1	1	0	0	1.50

Pony AI currently has a consensus target price of $19.57, suggesting a potential upside of 166.33%. Radware has a consensus target price of $25.00, suggesting a potential downside of 11.60%. Given Pony AI’s stronger consensus rating and higher possible upside, research analysts plainly believe Pony AI is more favorable than Radware.

Volatility and Risk

Pony AI has a beta of 3.87, meaning that its share price is 287% more volatile than the S&P 500. Comparatively, Radware has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Profitability

This table compares Pony AI and Radware’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pony AI	-118.47%	-14.86%	-13.97%
Radware	5.34%	7.47%	4.26%

Earnings & Valuation

This table compares Pony AI and Radware”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pony AI	$90.00 million	35.48	-$133.97 million	($0.36)	-20.42
Radware	$301.85 million	3.94	$20.26 million	$0.38	74.42

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

Insider and Institutional Ownership

73.1% of Radware shares are owned by institutional investors. 21.6% of Radware shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Radware beats Pony AI on 9 of the 14 factors compared between the two stocks.

About Pony AI

Pony AI Inc., through its subsidiaries, engages in the autonomous mobility principally in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. Pony AI Inc. is based in Guangzhou, the People’s Republic of China.

About Radware

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers worldwide. The company operates in two segments, Radware’s Core Business and The Hawks’ Business. It offers DefensePro provides automated DDoS protection; Radware Kubernetes, a web application firewall solution; and Cyber Controller, a unified solution for management, configuration, and attack lifecycle. The company also provides Alteon, an application delivery and security solution that manages application traffic across cloud and data center locations for optimizing availability and performance; and LinkProof NG, a multi-homing and enterprise gateway solution. In addition, it offers ERT Security Updates Subscription that provides protection from network elements, hosts, and applications; ERT Active Attackers Feed, a threat intelligence feed to protect against DDoS threats; ERT Protection Packages; Alteon Global Elastic License, a purchasing and deployment subscription; MSSP Portal, a DDoS detection and mitigation service portal; Location-based Mitigation that enables network traffic based on the geolocation mapping of IP subnets; and Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud. Further, the company provides Cloud Web DDoS Protection, Cloud WAF Service, Bot Manager, Cloud-Native Protector, and Cloud Application Protection Services, as well as technical support, professional, managed, and training and certification services. It sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. The company was founded in 1996 and is headquartered in Tel Aviv, Israel.