Comparing Freshworks (NASDAQ:FRSH) & Clear Secure (NYSE:YOU)

Clear Secure (NYSE:YOUGet Free Report) and Freshworks (NASDAQ:FRSHGet Free Report) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clear Secure $735.18 million 4.29 $28.11 million $0.86 26.31
Freshworks $720.42 million 7.18 -$95.37 million ($0.32) -53.34

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

Analyst Recommendations

This is a summary of current ratings and target prices for Clear Secure and Freshworks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clear Secure 0 2 3 0 2.60
Freshworks 1 4 8 0 2.54

Clear Secure currently has a consensus target price of $34.00, suggesting a potential upside of 50.28%. Freshworks has a consensus target price of $20.62, suggesting a potential upside of 20.77%. Given Clear Secure’s stronger consensus rating and higher probable upside, research analysts plainly believe Clear Secure is more favorable than Freshworks.

Profitability

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

Net Margins Return on Equity Return on Assets
Clear Secure 10.93% 48.28% 12.96%
Freshworks -13.24% -6.63% -4.81%

Volatility and Risk

Clear Secure has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Freshworks has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Insider and Institutional Ownership

73.8% of Clear Secure shares are owned by institutional investors. Comparatively, 75.6% of Freshworks shares are owned by institutional investors. 37.8% of Clear Secure shares are owned by company insiders. Comparatively, 19.2% of Freshworks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

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

About Clear Secure

(Get Free Report)

Clear Secure, Inc. operates a secure identity platform under the CLEAR brand name primarily in the United States. Its secure identity platform is a multi-layered infrastructure consisting of front-end, including enrollment, verification, and linking, as well as back-end. The company also offers CLEAR Plus, a consumer aviation subscription service, which enables access to predictable entry lanes in airport security checkpoints, as well as access to broader network; and CLEAR mobile app, which is used to enroll new members and improve the experience for existing members. In addition, it provides RESERVE powered by CLEAR, a virtual queuing technology that provides users with the ability to book a dedicated time slot to go through security at the airport; CLEAR Verified, a B2B offering that extends secure identity platform to partners to create friction-free experiences for their customers; TSA PreCheck Enrollment Provided by CLEAR, as well as online renewal services; Atlas Certified, an automated solution to verify professional licenses and certification data across industries; and Sora ID that enables adding know your customer services to platform offerings, as well as virtual queuing technology that enables customers to manage lines. The company was founded in 2010 and is headquartered in New York, New York. Clear Secure, Inc. is a subsidiary of Alclear Investments, Llc.

About Freshworks

(Get Free Report)

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.

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