Freshworks vs HubSpot

Freshworks and HubSpot are two leading players in the competitive customer relationship management (CRM) software market, with both companies experiencing significant growth in recent years. Freshworks, a cloud-based software company based in San Mateo, California, has seen its stock perform well since its IPO in 2021. HubSpot, a Massachusetts-based CRM software provider, has also shown strong growth and performance in the stock market. Investors looking to capitalize on the burgeoning CRM industry may find both Freshworks and HubSpot stocks to be attractive investment opportunities.

Freshworks or HubSpot?

When comparing Freshworks and HubSpot, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Freshworks and HubSpot.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Freshworks has a dividend yield of -%, while HubSpot has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Freshworks reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, HubSpot reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Freshworks P/E ratio at -33.63 and HubSpot's P/E ratio at -1014.27. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Freshworks P/B ratio is 3.09 while HubSpot's P/B ratio is 17.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Freshworks has seen a 5-year revenue growth of -0.73%, while HubSpot's is 2.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Freshworks's ROE at -9.49% and HubSpot's ROE at -1.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.29 for Freshworks and $547.26 for HubSpot. Over the past year, Freshworks's prices ranged from $10.81 to $24.98, with a yearly change of 131.04%. HubSpot's prices fluctuated between $407.23 and $693.85, with a yearly change of 70.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.