Freshworks (NASDAQ:FRSH – Get Free Report) and Duos Technologies Group (NASDAQ:DUOT – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.
Insider and Institutional Ownership
75.6% of Freshworks shares are held by institutional investors. Comparatively, 42.6% of Duos Technologies Group shares are held by institutional investors. 19.2% of Freshworks shares are held by insiders. Comparatively, 4.3% of Duos Technologies Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Freshworks has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Duos Technologies Group has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Freshworks | 0 | 7 | 10 | 0 | 2.59 |
| Duos Technologies Group | 0 | 0 | 1 | 0 | 3.00 |
Freshworks currently has a consensus price target of $21.53, suggesting a potential upside of 59.48%. Duos Technologies Group has a consensus price target of $5.75, suggesting a potential upside of 79.69%. Given Duos Technologies Group’s stronger consensus rating and higher probable upside, analysts plainly believe Duos Technologies Group is more favorable than Freshworks.
Valuation and Earnings
This table compares Freshworks and Duos Technologies Group’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Freshworks | $596.43 million | 6.76 | -$137.44 million | ($0.40) | -33.75 |
| Duos Technologies Group | $7.47 million | 3.23 | -$11.24 million | ($1.65) | -1.94 |
Duos Technologies Group has lower revenue, but higher earnings than Freshworks. Freshworks is trading at a lower price-to-earnings ratio than Duos Technologies Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Freshworks and Duos Technologies Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Freshworks | -18.93% | -10.66% | -7.92% |
| Duos Technologies Group | -200.92% | -237.64% | -92.45% |
Summary
Freshworks beats Duos Technologies Group on 9 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 Duos Technologies Group
Duos Technologies Group, Inc. designs, develops, deploys, and operates intelligent technology solutions in North America. The company provides solutions, such as Centraco, an enterprise information management software platform that consolidates data and events from multiple sources into a unified and distributive user interface; and truevue360, an integrated platform to develop and deploy artificial intelligence algorithms, including machine learning, computer vision, object detection, and deep neural network-based processing for real-time applications. Its proprietary applications include Railcar Inspection Portal that provides freight and transit railroad customers and select government agencies the ability to conduct fully automated railcar inspections of trains while they are moving at full speed. It also develops Automated Logistics Information System, which automates gatehouse operations, as well as develops solutions for rail, trucking, aviation, and other vehicle-based processes. In addition, the company provides consulting services, including consulting and auditing; software licensing with optional hardware sales; customer service training; and maintenance support. The company operates its services under the duostech brand. The company is headquartered in Jacksonville, Florida.
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