Twilio (NYSE: TWLO) and CYREN (NASDAQ:CYRN) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Valuation & Earnings

This table compares Twilio and CYREN’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Twilio $336.73 million 7.91 -$34.74 million ($0.52) -55.75
CYREN $31.73 million 2.04 -$3.67 million ($0.20) -8.25

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

Risk & Volatility

Twilio has a beta of 3.36, indicating that its share price is 236% more volatile than the S&P 500. Comparatively, CYREN has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Twilio -13.42% -15.40% -12.25%
CYREN -25.73% -27.40% -17.06%

Institutional and Insider Ownership

84.3% of Twilio shares are owned by institutional investors. Comparatively, 26.1% of CYREN shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Twilio and CYREN, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twilio 1 1 15 0 2.82
CYREN 0 0 0 0 N/A

Twilio currently has a consensus target price of $37.53, indicating a potential upside of 29.47%. Given Twilio’s higher probable upside, research analysts plainly believe Twilio is more favorable than CYREN.

Summary

Twilio beats CYREN on 9 of the 11 factors compared between the two stocks.

Twilio Company Profile

Twilio Inc. offers Cloud Communications Platform, which enables developers to build, scale and operate real-time communications within software applications. The Company’s platform consists of Programmable Communications Cloud, Super Network and Business Model for Innovators. Its Programmable Communications Cloud software enables developers to embed voice, messaging, video and authentication capabilities into their applications through its Application Programming Interfaces (APIs). Its Programmable Communications Cloud offers building blocks that enable its customers to build what they need. Its Programmable Communications Cloud includes Programmable Voice, Programmable Messaging, Programmable Video and Use Case APIs. The Super Network is its software layer that allows its customers’ software to communicate with connected devices globally. It interconnects with communications networks around the world.

CYREN Company Profile

CYREN Ltd. (CYREN) is engaged in developing and marketing information security solutions for protecting Web, e-mail and mobile transactions. The Company is a Security-as-a-Service provider of integrated cloud-based security technology solutions that mitigate cyber threats, malware attacks, information leaks, legal liability and productivity loss through the application of cyber intelligence. It delivers security services to a range of customers and original equipment manufacturer, and service provider distribution partners, including network and security vendors offering content security gateways, unified threat management solutions and antivirus solutions, and to service providers, such as Software-as-a-Service vendors, Web hosting providers and Internet service providers. Its technologies include CYREN GlobalView Cloud and Recurrent Pattern Detection. Its offerings include CYREN WebSecurity (CWS), CYREN EmailSecurity, Cyber Intelligence Suite and Embedded Solutions.

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