Analyzing Twilio (NYSE:TWLO) & Its Rivals

Twilio (NYSE: TWLO) is one of 65 publicly-traded companies in the “Application Software” industry, but how does it compare to its competitors? We will compare Twilio to similar businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Volatility & Risk



Twilio has a beta of 3.24, meaning that its share price is 224% more volatile than the S&P 500. Comparatively, Twilio’s competitors have a beta of 1.61, meaning that their average share price is 61% more volatile than the S&P 500.

Profitability

This table compares Twilio and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twilio -13.42% -15.40% -12.25%
Twilio Competitors -65.89% -93.35% -17.71%

Institutional & Insider Ownership

57.5% of Twilio shares are owned by institutional investors. Comparatively, 68.6% of shares of all “Application Software” companies are owned by institutional investors. 15.7% of shares of all “Application Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Twilio and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twilio 1 2 14 0 2.76
Twilio Competitors 181 1517 2906 98 2.62

Twilio presently has a consensus target price of $38.13, suggesting a potential upside of 21.48%. As a group, “Application Software” companies have a potential downside of 1.15%. Given Twilio’s stronger consensus rating and higher probable upside, analysts plainly believe Twilio is more favorable than its competitors.

Earnings and Valuation

This table compares Twilio and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Twilio $336.73 million -$34.74 million -60.37
Twilio Competitors $761.46 million $137.65 million 35.04

Twilio’s competitors have higher revenue and earnings than Twilio. Twilio is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Twilio beats its competitors on 7 of the 12 factors compared.

Twilio Company Profile

Twilio Inc. offers Cloud Communications Platform, which enables developers to build, scale and operate real-time communications within software applications. The Company’s platform consists of Programmable Communications Cloud, Super Network and Business Model for Innovators. Its Programmable Communications Cloud software enables developers to embed voice, messaging, video and authentication capabilities into their applications through its Application Programming Interfaces (APIs). Its Programmable Communications Cloud offers building blocks that enable its customers to build what they need. Its Programmable Communications Cloud includes Programmable Voice, Programmable Messaging, Programmable Video and Use Case APIs. The Super Network is its software layer that allows its customers’ software to communicate with connected devices globally. It interconnects with communications networks around the world.

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