Software - Application
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FRSH vs HUBS
Revenue, margins, valuation, and 5-year total return — side by side.
Software - Application
FRSH vs HUBS — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Software - Application | Software - Application |
| Market Cap | $2.58B | $12.11B |
| Revenue (TTM) | $871M | $3.13B |
| Net Income (TTM) | $180M | $46M |
| Gross Margin | 85.0% | 83.8% |
| Operating Margin | 1.8% | 0.2% |
| Forward P/E | 15.9x | 19.6x |
| Total Debt | $67M | $485M |
| Cash & Equiv. | $632M | $882M |
FRSH vs HUBS — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | Sep 21 | May 26 | Return |
|---|---|---|---|
| Freshworks Inc. (FRSH) | 100 | 21.2 | -78.8% |
| HubSpot, Inc. (HUBS) | 100 | 36.1 | -63.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: FRSH vs HUBS
Each card shows where this stock fits in a portfolio — not just who wins on paper.
FRSH carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- beta 1.15
- Lower volatility, beta 1.15, Low D/E 6.4%, current ratio 2.14x
- Beta 1.15, current ratio 2.14x
HUBS is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 19.2%, EPS growth 8.6%, 3Y rev CAGR 21.8%
- 428.3% 10Y total return vs FRSH's -81.4%
- 19.2% revenue growth vs FRSH's 16.4%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 19.2% revenue growth vs FRSH's 16.4% | |
| Value | Lower P/E (15.9x vs 19.6x) | |
| Quality / Margins | 20.7% margin vs HUBS's 1.5% | |
| Stability / Safety | Beta 1.15 vs HUBS's 1.18, lower leverage | |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | -37.9% vs HUBS's -62.8% | |
| Efficiency (ROA) | 11.9% ROA vs HUBS's 1.2%, ROIC 2.0% vs 0.4% |
FRSH vs HUBS — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FRSH vs HUBS — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
FRSH leads this category, winning 4 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
HUBS is the larger business by revenue, generating $3.1B annually — 3.6x FRSH's $871M. FRSH is the more profitable business, keeping 20.7% of every revenue dollar as net income compared to HUBS's 1.5%. On growth, HUBS holds the edge at +20.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $871M | $3.1B |
| EBITDAEarnings before interest/tax | $41M | $139M |
| Net IncomeAfter-tax profit | $180M | $46M |
| Free Cash FlowCash after capex | $254M | $677M |
| Gross MarginGross profit ÷ Revenue | +85.0% | +83.8% |
| Operating MarginEBIT ÷ Revenue | +1.8% | +0.2% |
| Net MarginNet income ÷ Revenue | +20.7% | +1.5% |
| FCF MarginFCF ÷ Revenue | +29.2% | +21.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | +16.5% | +20.4% |
| EPS Growth (YoY)Latest quarter vs prior year | — | +10.6% |
Valuation Metrics
FRSH leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 14.1x trailing earnings, FRSH trades at a 95% valuation discount to HUBS's 273.4x P/E. On an enterprise value basis, FRSH's 28.3x EV/EBITDA is more attractive than HUBS's 66.6x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $2.6B | $12.1B |
| Enterprise ValueMkt cap + debt − cash | $2.0B | $11.7B |
| Trailing P/EPrice ÷ TTM EPS | 14.07x | 273.44x |
| Forward P/EPrice ÷ next-FY EPS est. | 15.87x | 19.61x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 28.31x | 66.56x |
| Price / SalesMarket cap ÷ Revenue | 3.08x | 3.87x |
| Price / BookPrice ÷ Book value/share | 2.52x | 6.05x |
| Price / FCFMarket cap ÷ FCF | 10.52x | 17.11x |
Profitability & Efficiency
FRSH leads this category, winning 8 of 8 comparable metrics.
Profitability & Efficiency
FRSH delivers a 18.5% return on equity — every $100 of shareholder capital generates $19 in annual profit, vs $2 for HUBS. FRSH carries lower financial leverage with a 0.06x debt-to-equity ratio, signaling a more conservative balance sheet compared to HUBS's 0.23x. On the Piotroski fundamental quality scale (0–9), FRSH scores 7/9 vs HUBS's 6/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +18.5% | +2.3% |
| ROA (TTM)Return on assets | +11.9% | +1.2% |
| ROICReturn on invested capital | +2.0% | +0.4% |
| ROCEReturn on capital employed | +1.2% | +0.5% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 0.06x | 0.23x |
| Net DebtTotal debt minus cash | -$566M | -$397M |
| Cash & Equiv.Liquid assets | $632M | $882M |
| Total DebtShort + long-term debt | $67M | $485M |
| Interest CoverageEBIT ÷ Interest expense | — | 65.51x |
Total Returns (Dividends Reinvested)
FRSH leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in HUBS five years ago would be worth $4,788 today (with dividends reinvested), compared to $1,864 for FRSH. Over the past 12 months, FRSH leads with a -37.9% total return vs HUBS's -62.8%. The 3-year compound annual growth rate (CAGR) favors FRSH at -13.0% vs HUBS's -19.1% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -23.6% | -38.5% |
| 1-Year ReturnPast 12 months | -37.9% | -62.8% |
| 3-Year ReturnCumulative with dividends | -34.2% | -47.1% |
| 5-Year ReturnCumulative with dividends | -81.4% | -52.1% |
| 10-Year ReturnCumulative with dividends | -81.4% | +428.3% |
| CAGR (3Y)Annualised 3-year return | -13.0% | -19.1% |
Risk & Volatility
FRSH leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
FRSH is the less volatile stock with a 1.15 beta — it tends to amplify market swings less than HUBS's 1.18 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. FRSH currently trades 54.9% from its 52-week high vs HUBS's 34.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.15x | 1.18x |
| 52-Week HighHighest price in past year | $16.14 | $682.57 |
| 52-Week LowLowest price in past year | $6.79 | $187.45 |
| % of 52W HighCurrent price vs 52-week peak | +54.9% | +34.5% |
| RSI (14)Momentum oscillator 0–100 | 64.6 | 57.5 |
| Avg Volume (50D)Average daily shares traded | 7.7M | 1.4M |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates FRSH as "Buy" and HUBS as "Buy". Consensus price targets imply 53.5% upside for HUBS (target: $361) vs 28.9% for FRSH (target: $11).
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $11.43 | $360.89 |
| # AnalystsCovering analysts | 18 | 47 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +15.0% | +4.1% |
FRSH leads in 5 of 6 categories — strongest in Income & Cash Flow and Valuation Metrics.
FRSH vs HUBS: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is FRSH or HUBS a better buy right now?
For growth investors, HubSpot, Inc.
(HUBS) is the stronger pick with 19. 2% revenue growth year-over-year, versus 16. 4% for Freshworks Inc. (FRSH). Freshworks Inc. (FRSH) offers the better valuation at 14. 1x trailing P/E (15. 9x forward), making it the more compelling value choice. Analysts rate Freshworks Inc. (FRSH) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — FRSH or HUBS?
On trailing P/E, Freshworks Inc.
(FRSH) is the cheapest at 14. 1x versus HubSpot, Inc. at 273. 4x. On forward P/E, Freshworks Inc. is actually cheaper at 15. 9x.
03Which is the better long-term investment — FRSH or HUBS?
Over the past 5 years, HubSpot, Inc.
(HUBS) delivered a total return of -52. 1%, compared to -81. 4% for Freshworks Inc. (FRSH). Over 10 years, the gap is even starker: HUBS returned +469. 1% versus FRSH's -81. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — FRSH or HUBS?
By beta (market sensitivity over 5 years), Freshworks Inc.
(FRSH) is the lower-risk stock at 1. 15β versus HubSpot, Inc. 's 1. 18β — meaning HUBS is approximately 3% more volatile than FRSH relative to the S&P 500. On balance sheet safety, Freshworks Inc. (FRSH) carries a lower debt/equity ratio of 6% versus 23% for HubSpot, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — FRSH or HUBS?
By revenue growth (latest reported year), HubSpot, Inc.
(HUBS) is pulling ahead at 19. 2% versus 16. 4% for Freshworks Inc. (FRSH). On earnings-per-share growth, the picture is similar: HubSpot, Inc. grew EPS 863. 0% year-over-year, compared to 296. 9% for Freshworks Inc.. Over a 3-year CAGR, HUBS leads at 21. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — FRSH or HUBS?
Freshworks Inc.
(FRSH) is the more profitable company, earning 21. 9% net margin versus 1. 5% for HubSpot, Inc. — meaning it keeps 21. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FRSH leads at 1. 6% versus 0. 4% for HUBS. At the gross margin level — before operating expenses — FRSH leads at 85. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is FRSH or HUBS more undervalued right now?
On forward earnings alone, Freshworks Inc.
(FRSH) trades at 15. 9x forward P/E versus 19. 6x for HubSpot, Inc. — 3. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HUBS: 53. 5% to $360. 89.
08Which pays a better dividend — FRSH or HUBS?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is FRSH or HUBS better for a retirement portfolio?
For long-horizon retirement investors, HubSpot, Inc.
(HUBS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 18), +469. 1% 10Y return). Both have compounded well over 10 years (HUBS: +469. 1%, FRSH: -81. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between FRSH and HUBS?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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