Life360 (NASDAQ:LIF) and Freshworks (NASDAQ:FRSH) Head to Head Review

Freshworks (NASDAQ:FRSH) and Life360 (NASDAQ:LIF) are both mid-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

75.6% of Freshworks shares are held by institutional investors. Comparatively, 20.0% of Life360 shares are held by institutional investors. 8.5% of Freshworks shares are held by company insiders. Comparatively, 6.8% of Life360 shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Freshworks and Life360″s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freshworks	$838.81 million	3.93	$183.72 million	$0.64	19.75
Life360	$489.48 million	7.37	$150.83 million	$1.71	25.89

Freshworks has higher revenue and earnings than Life360. Freshworks is trading at a lower price-to-earnings ratio than Life360, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Freshworks has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Life360 has a beta of 2.24, meaning that its share price is 124% more volatile than the S&P 500.

Profitability

This table compares Freshworks and Life360’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freshworks	20.49%	5.52%	3.45%
Life360	25.73%	5.66%	3.17%

Analyst Recommendations

This is a breakdown of recent ratings for Freshworks and Life360, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freshworks	0	9	7	1	2.53
Life360	0	5	5	1	2.64

Freshworks currently has a consensus target price of $14.46, indicating a potential upside of 14.41%. Life360 has a consensus target price of $60.72, indicating a potential upside of 37.13%. Given Life360’s stronger consensus rating and higher possible upside, analysts plainly believe Life360 is more favorable than Freshworks.

Summary

Life360 beats Freshworks on 8 of the 14 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 Life360

Life360 Inc. is a family connection and safety company. Its business category includes mobile app and Tile tracking devices with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch. Life360 Inc. is based in SAN FRANCISCO.