Head to Head Survey: Freshworks (NASDAQ:FRSH) vs. Grab (NASDAQ:GRAB)

Freshworks (NASDAQ:FRSH) and Grab (NASDAQ:GRAB) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Profitability

This table compares Freshworks and Grab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freshworks	20.69%	4.27%	2.74%
Grab	10.67%	5.79%	3.28%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freshworks	1	8	6	0	2.33
Grab	0	2	8	1	2.91

Freshworks presently has a consensus target price of $12.18, suggesting a potential upside of 11.71%. Grab has a consensus target price of $6.01, suggesting a potential upside of 67.05%. Given Grab’s stronger consensus rating and higher probable upside, analysts plainly believe Grab is more favorable than Freshworks.

Valuation and Earnings

This table compares Freshworks and Grab”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freshworks	$838.81 million	3.59	$183.72 million	$0.62	17.59
Grab	$3.37 billion	4.37	$268.00 million	$0.01	359.50

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

Risk and Volatility

Freshworks has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Grab has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Institutional and Insider Ownership

75.6% of Freshworks shares are held by institutional investors. Comparatively, 55.5% of Grab shares are held by institutional investors. 8.5% of Freshworks shares are held by insiders. Comparatively, 3.6% of Grab shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Grab beats Freshworks on 10 of the 15 factors compared between the two stocks.

About Freshworks

Freshworks Inc., a software development company, provides software-as-a-service products worldwide. It offers Freshworks Customer Service Suite, which provides automated, personalized self-service on various channels, including web, chat, mobile messaging, email, and social; Freshdesk, a ticketing-centric customer service solution; Freshsuccess, a customer success solution; and Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels. The company also provides Freshsales, an advanced and user-friendly sales automation solution; Freshmarketer, a marketing automation solution for businesses to redefine their marketing strategies; Freshsales Suite, which offers businesses a unified platform that facilitates cohesive engagement and detailed tracking of customers throughout their entire buying journey; Freshservice that offers virtual agents to help employees resolve issues, make requests, and answer questions without contacting the service desk; and Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data. In addition, it offers Freshping to monitor website’s availability and get multichannel alerts if the website goes down; Freshstatus, which allows businesses to create a custom branded website status page for internal or external viewing to communicate website uptime and availability; and Freshsurvey to measure net promoter scores and other satisfaction metrics directly within Freshworks products. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.

About Grab

Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.