Contrasting Twilio (NYSE:TWLO) and Fujitsu (OTCMKTS:FJTSY)

Fujitsu (OTCMKTS:FJTSY) and Twilio (NYSE:TWLO) are both large-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Risk & Volatility

Fujitsu has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Twilio has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.

Profitability

This table compares Fujitsu and Twilio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fujitsu	N/A	N/A	N/A
Twilio	21.82%	5.58%	4.56%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Fujitsu and Twilio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fujitsu	0	2	0	1	2.67
Twilio	1	2	22	3	2.96

Twilio has a consensus price target of $269.48, indicating a potential upside of 33.43%. Given Twilio’s stronger consensus rating and higher possible upside, analysts clearly believe Twilio is more favorable than Fujitsu.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fujitsu	$23.27 billion	1.55	$2.97 billion	$0.54	38.05
Twilio	$5.07 billion	6.12	$33.83 million	$7.95	25.40

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

Insider & Institutional Ownership

0.1% of Fujitsu shares are owned by institutional investors. Comparatively, 84.3% of Twilio shares are owned by institutional investors. 0.2% of Twilio shares are owned by 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

Twilio beats Fujitsu on 12 of the 14 factors compared between the two stocks.

About Fujitsu

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including notebooks, tablet PC’s, desktop PC’s, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. The company was founded in 1923 and is headquartered in Tokyo, Japan.

About Twilio

Twilio Inc., together with its subsidiaries, provides customer engagement platform solutions in the United States and internationally. It operates through two segments, Twilio Communications and Twilio Segment. The company provides various application programming interfaces and software solutions for communications between customers and end users, including messaging, voice, email, flex, marketing campaigns, and user identity and authentication. It also offers software products to build direct, personalized relationships with their end users, such as segment, a platform that provides tools for first-party data by unifying real-time information collected; and engage, an automation platform for the delivery of omnichannel campaigns. Twilio Inc. was incorporated in 2008 and is headquartered in San Francisco, California.