Critical Review: Radware (RDWR) versus Twilio (TWLO)
Radware (NASDAQ: RDWR) and Twilio (NYSE:TWLO) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.
This is a breakdown of current ratings and recommmendations for Radware and Twilio, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Radware presently has a consensus target price of $18.75, indicating a potential upside of 11.28%. Twilio has a consensus target price of $37.93, indicating a potential upside of 23.88%. Given Twilio’s higher probable upside, analysts plainly believe Twilio is more favorable than Radware.
This table compares Radware and Twilio’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Radware has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Twilio has a beta of 3.26, indicating that its share price is 226% more volatile than the S&P 500.
Earnings and Valuation
This table compares Radware and Twilio’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Radware||$198.44 million||3.72||-$1.17 million||($0.29)||-58.10|
|Twilio||$336.73 million||8.36||-$34.74 million||($0.52)||-58.88|
Radware has higher revenue, but lower earnings than Twilio. Twilio 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
60.1% of Radware shares are held by institutional investors. Comparatively, 84.3% of Twilio shares are held by institutional investors. 21.6% of Radware shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Radware beats Twilio on 7 of the 13 factors compared between the two stocks.
Radware Ltd. is a provider of cyber security and application delivery solutions. The Company’s solutions incorporate Distributed Denial of Service protection, Web application firewall (WAF) and Application Delivery Controllers (ADC) technologies to enable its customers to provide cyber-attack mitigation solutions for a range of applications. The Company’s products and activities are focused on protecting against cyber-attacks and ensuring optimal application service level for enterprises’ and carriers’ data centers. Its solutions include application and network security, and application delivery. Its application and network Security products include DefensePro Attack Mitigation Device, AppWall Web Application Firewall, DefenseFlow Cyber Command and Control application, and DefensePipe Cloud Scrubbing Service. Its application delivery products include Alteon NG, LinkProof NG and FastView. Its management solutions include APSolute Vision, application performance monitoring and vDirect.
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.
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