Twilio (TWLO) and Mobileye NV (MBLY) Critical Analysis

Twilio (NYSE: TWLO) and Mobileye NV (NYSE:MBLY) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Institutional and Insider Ownership

57.4% of Twilio shares are held by institutional investors. Comparatively, 61.0% of Mobileye NV shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Twilio and Mobileye NV’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Twilio $336.73 million 8.73 -$34.74 million ($0.52) -61.52
Mobileye NV $407.63 million 34.12 $138.64 million $0.50 125.34

Mobileye NV has higher revenue and earnings than Twilio. Twilio is trading at a lower price-to-earnings ratio than Mobileye NV, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Twilio has a beta of 3.25, meaning that its share price is 225% more volatile than the S&P 500. Comparatively, Mobileye NV has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Twilio and Mobileye NV, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twilio 1 2 14 0 2.76
Mobileye NV 1 19 2 0 2.05

Twilio currently has a consensus target price of $38.13, indicating a potential upside of 19.20%. Mobileye NV has a consensus target price of $55.34, indicating a potential downside of 11.69%. Given Twilio’s stronger consensus rating and higher probable upside, research analysts plainly believe Twilio is more favorable than Mobileye NV.

Profitability

This table compares Twilio and Mobileye NV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twilio -13.42% -15.40% -12.25%
Mobileye NV 26.88% 18.47% 16.50%

Summary

Mobileye NV beats Twilio on 8 of the 12 factors compared between the two stocks.

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.

Mobileye NV Company Profile

Mobileye N.V. is engaged in the development of computer vision and machine learning-based sensing, mapping and driving policy technology for advanced driver assistance systems and autonomous driving technologies. The Company operates through two segments: Original Equipment Manufacturing, which supplies the software algorithms and EyeQ chip, and After Market, which sells a complete system, which includes its software algorithms and EyeQ chip, as well as the camera and other necessary components. Its software algorithms and EyeQ chips perform detailed interpretations of the visual field in order to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris and other obstacles. Its products are able to detect roadway markings; identify and read traffic signs, directional signs and traffic lights; create a Roadbook of localized drivable paths and visual landmarks using its road experience management technology, and provide mapping for autonomous driving.

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