Unity Software (NYSE:U) and Twilio (NYSE:TWLO) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Analyst Recommendations
This is a summary of current recommendations for Unity Software and Twilio, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Unity Software | 1 | 3 | 8 | 0 | 2.58 |
Twilio | 0 | 1 | 22 | 0 | 2.96 |
Unity Software presently has a consensus price target of $126.30, indicating a potential upside of 29.86%. Twilio has a consensus price target of $443.75, indicating a potential upside of 20.51%. Given Unity Software's higher possible upside, analysts clearly believe Unity Software is more favorable than Twilio.
Profitability
This table compares Unity Software and Twilio's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Unity Software | N/A | N/A | N/A |
Twilio | -26.01% | -5.43% | -4.53% |
Valuation & Earnings
This table compares Unity Software and Twilio's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Unity Software | N/A | N/A | N/A | N/A | N/A |
Twilio | $1.13 billion | 55.34 | $-307,060,000.00 | ($1.83) | -201.22 |
Unity Software has higher earnings, but lower revenue than Twilio.
Institutional & Insider Ownership
61.9% of Unity Software shares are owned by institutional investors. Comparatively, 82.5% of Twilio shares are owned by institutional investors. 6.7% of Twilio shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Twilio beats Unity Software on 5 of the 9 factors compared between the two stocks.