Analyzing Freshworks (NASDAQ:FRSH) and Argo Blockchain (NASDAQ:ARBK)

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

Risk and Volatility

Argo Blockchain has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500. Comparatively, Freshworks has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Valuation & Earnings

This table compares Argo Blockchain and Freshworks”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Argo Blockchain	$15.52 million	1.94	$5.08 million	($117.39)	-0.02
Freshworks	$838.81 million	3.98	$183.72 million	$0.64	19.97

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

Analyst Ratings

This is a summary of current recommendations and price targets for Argo Blockchain and Freshworks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Argo Blockchain	1	1	0	0	1.50
Freshworks	0	8	7	1	2.56

Freshworks has a consensus target price of $14.46, suggesting a potential upside of 13.16%. Given Freshworks’ stronger consensus rating and higher possible upside, analysts clearly believe Freshworks is more favorable than Argo Blockchain.

Profitability

This table compares Argo Blockchain and Freshworks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Argo Blockchain	N/A	N/A	N/A
Freshworks	20.49%	5.52%	3.45%

Institutional and Insider Ownership

2.4% of Argo Blockchain shares are held by institutional investors. Comparatively, 75.6% of Freshworks shares are held by institutional investors. 8.5% of Freshworks shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Freshworks beats Argo Blockchain on 14 of the 15 factors compared between the two stocks.

About Argo Blockchain

Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for complex cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. Argo Blockchain plc was incorporated in 2017 and is based in London, the United Kingdom.

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.