Connecture (NYSE: TWLO) and Twilio (NYSE:TWLO) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Connecture -20.25% N/A -18.17%
Twilio -18.29% -21.41% -13.66%

Volatility and Risk

Connecture has a beta of 3.15, indicating that its stock price is 215% more volatile than the S&P 500. Comparatively, Twilio has a beta of -0.26, indicating that its stock price is 126% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Connecture and Twilio, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connecture 0 0 0 0 N/A
Twilio 0 1 16 0 2.94

Twilio has a consensus price target of $68.86, indicating a potential downside of 13.92%. Given Twilio’s higher possible upside, analysts plainly believe Twilio is more favorable than Connecture.

Valuation and Earnings

This table compares Connecture 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
Connecture $76.74 million 0.10 -$15.54 million N/A N/A
Twilio $399.02 million 19.54 -$63.70 million ($0.78) -102.55

Connecture has higher earnings, but lower revenue than Twilio.

Institutional & Insider Ownership

35.2% of Connecture shares are held by institutional investors. Comparatively, 57.6% of Twilio shares are held by institutional investors. 68.6% of Connecture shares are held by company insiders. Comparatively, 19.8% of Twilio shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Twilio beats Connecture on 7 of the 11 factors compared between the two stocks.

Connecture Company Profile

Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.

Twilio Company Profile

Twilio Inc. provides a cloud communications platform that enables developers to build, scale, and operate communications within software applications in the United States and internationally. The company's programmable communications cloud provides a set of application programming interfaces that enable developers to embed voice, messaging, and video capabilities into their applications. Twilio Inc. was founded in 2008 and is headquartered in San Francisco, California.

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