Kaltura (NASDAQ:KLTR) & Freshworks (NASDAQ:FRSH) Critical Review

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kaltura	1	0	1	0	2.00
Freshworks	1	8	7	0	2.38

Kaltura presently has a consensus price target of $3.00, indicating a potential upside of 97.37%. Freshworks has a consensus price target of $12.92, indicating a potential upside of 49.67%. Given Kaltura’s higher probable upside, research analysts plainly believe Kaltura is more favorable than Freshworks.

Risk and Volatility

Kaltura has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Freshworks has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Insider & Institutional Ownership

30.8% of Kaltura shares are owned by institutional investors. Comparatively, 75.6% of Freshworks shares are owned by institutional investors. 13.5% of Kaltura shares are owned by insiders. Comparatively, 11.2% of Freshworks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Kaltura and Freshworks”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kaltura	$178.72 million	1.33	-$31.32 million	($0.12)	-12.67
Freshworks	$838.81 million	2.90	$183.72 million	$0.64	13.48

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kaltura	-10.01%	-54.84%	-6.44%
Freshworks	21.90%	4.69%	3.07%

Summary

Freshworks beats Kaltura on 11 of the 14 factors compared between the two stocks.

About Kaltura

Kaltura, Inc. provides various software-as-a-service (SaaS) products and solutions and a platform-as-a-service (PaaS) in the United States, Europe, the Middle East, Africa, and internationally. The company operates through two segments, Enterprise, Education, and Technology (EE&T); and Media and Telecom (M&T). It offers video products, such as virtual and hybrid events, webinars, video portals, online learning, and content portals for training, marketing, virtual and hybrid events, communication, collaboration, sales, and customer care; and education solutions, such as learning management system video and lecture capture solutions. The company also provides online video experiences, including for over-the-top (OTT) television, cloud TV, web video publishing, video-based teaching, learning, training, video-based marketing, and video-based collaboration. In addition, it offers application programming interfaces (APIs), software development kits, and experience components, including live, real-time and on-demand video, ingestion, transcoding, enrichment, management, distribution, engagement, monetization, and deep viewer analytics, as well as video player, video editor, video capture tool, and chat and networking widgets. The company serves a range of industries, including financial services, high technology, healthcare and pharmaceuticals, education, public sector, media, telecommunications, information technology (IT) and professional services, retail, and manufacturing. Kaltura, Inc. was incorporated in 2006 and is headquartered in New York, New York.

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.