Radware (NASDAQ:RDWR – Get Free Report) and Agora (NASDAQ:API – Get Free Report) are both small-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Profitability
This table compares Radware and Agora’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Radware | 4.26% | 6.64% | 3.71% |
| Agora | 7.23% | 1.96% | 1.52% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Radware and Agora, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Radware | 0 | 3 | 0 | 0 | 2.00 |
| Agora | 0 | 2 | 1 | 0 | 2.33 |
Radware presently has a consensus target price of $40.00, suggesting a potential upside of 27.47%. Agora has a consensus target price of $6.80, suggesting a potential upside of 71.72%. Given Agora’s stronger consensus rating and higher possible upside, analysts clearly believe Agora is more favorable than Radware.
Valuation and Earnings
This table compares Radware and Agora”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Radware | $301.85 million | 4.37 | $20.26 million | $0.31 | 101.23 |
| Agora | $141.06 million | 2.45 | $9.53 million | $0.11 | 36.00 |
Radware has higher revenue and earnings than Agora. Agora is trading at a lower price-to-earnings ratio than Radware, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
73.1% of Radware shares are owned by institutional investors. Comparatively, 40.4% of Agora shares are owned by institutional investors. 21.6% of Radware shares are owned by company insiders. Comparatively, 14.6% of Agora shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Radware has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Agora has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Summary
Radware beats Agora on 9 of the 14 factors compared between the two stocks.
About Radware
Radware Ltd. is a cybersecurity and application delivery company founded in 1996. It provides technologies designed to protect applications and networks from cyberattacks while helping businesses maintain the availability and performance of their digital services. Its offerings include cloud and on-premises protection against distributed denial-of-service (DDoS) attacks, web application firewalls, bot management, API security and application delivery controllers. Radware also provides related services such as threat intelligence, monitoring and incident response.
About Agora
Agora, Inc. provides cloud software and developer tools for real-time engagement. Its platform offers application programming interfaces and software development kits that let businesses add voice and video communication, interactive live streaming, messaging and signaling to their applications. The company serves developers and organizations across a range of industries and markets worldwide. Its products are designed to support interactive experiences such as in-app calls, online events and real-time collaboration.
Receive News & Ratings for Radware Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Radware and related companies with MarketBeat.com's FREE daily email newsletter.
