Critical Comparison: Twilio (NYSE:TWLO) and Indra Sistemas (OTCMKTS:ISMAY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Indra Sistemas	7.12%	22.61%	4.57%
Twilio	20.61%	5.09%	4.15%

Institutional & Insider Ownership

84.3% of Twilio shares are held by institutional investors. 0.3% of Indra Sistemas shares are held by company insiders. Comparatively, 0.2% of Twilio shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Indra Sistemas and Twilio”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Indra Sistemas	$6.17 billion	1.89	$493.10 million	$1.47	22.44
Twilio	$5.57 billion	7.61	$33.83 million	$7.18	38.47

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

Volatility and Risk

Indra Sistemas has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Twilio has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Indra Sistemas and Twilio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Indra Sistemas	0	1	1	0	2.50
Twilio	2	2	22	2	2.86

Twilio has a consensus price target of $258.65, suggesting a potential downside of 6.36%. Given Twilio’s stronger consensus rating and higher probable upside, analysts plainly believe Twilio is more favorable than Indra Sistemas.

Summary

Twilio beats Indra Sistemas on 10 of the 15 factors compared between the two stocks.

About Indra Sistemas

Indra Sistemas, S.A. operates as a technology and consulting company for aerospace, defense, and mobility business worldwide. The company operates through four segments: Defence, Air Traffic, Mobility, and Minsait. It offers Mova Consulting for planing and designing transport infrastructures; Mova Collect for ticketing, tolling, and back office applications; Mova Traffic for building traffic management and control solutions; Mova Protect for protection of businesses and people; Mova Experience; Mova Comms for connecting the transportation ecosystem with personalized communication solutions; Mova Care that provides infrastructure operation and maintenance, technology operation and maintenance, and transportation services operation and maintenance; and In-Mova Space, a technological mobility and infrastructure management platform. The company also provides Indra Air Automation; Indra Air Communication; Indra Air Navigation; Indra Air Surveillance; Indra Air Drones; Indra Air Information; and Indra Air Services for air traffic applications. In addition, the company offers defence and security solutions, including Platforms, defence systems, security, cyberdefence, space technologies applied to military operations, military and civilian training solutions, and logistics and maintenance services; and other technological solutions for public administration, industry and consumption, financial services, energy, and telco and media sectors. Indra Sistemas, S.A. was founded in 1921 and is based in Alcobendas, Spain.

About Twilio

Twilio Inc., together with its subsidiaries, provides customer engagement platform solutions in the United States and internationally. It operates through two segments, Twilio Communications and Twilio Segment. The company provides various application programming interfaces and software solutions for communications between customers and end users, including messaging, voice, email, flex, marketing campaigns, and user identity and authentication. It also offers software products to build direct, personalized relationships with their end users, such as segment, a platform that provides tools for first-party data by unifying real-time information collected; and engage, an automation platform for the delivery of omnichannel campaigns. Twilio Inc. was incorporated in 2008 and is headquartered in San Francisco, California.