Comprehensive Stock Comparison
Compare Twilio Inc. (TWLO) vs Meta Platforms, Inc. (META) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | META | 22.2% revenue growth vs TWLO's 13.7% |
| Value | META | Lower P/E (21.8x vs 22.3x) |
| Quality / Margins | META | 30.1% net margin vs TWLO's 0.7% |
| Stability / Safety | META | Beta 1.42 vs TWLO's 1.56 |
| Dividends | META | 0.3% yield; 2-year raise streak; TWLO pays no meaningful dividend |
| Momentum (1Y) | TWLO | +0.9% vs META's -2.7% |
| Efficiency (ROA) | META | 16.5% ROA vs TWLO's 0.3%, ROIC 27.6% vs 1.5% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Twilio is a cloud communications platform that enables developers to embed voice, messaging, video, and email capabilities into their applications through APIs. It generates revenue primarily from usage-based fees for its communication services — messaging (~60% of revenue), voice (~20%), and email/other services — with developers paying per message, minute, or email sent. Its key advantage is its developer-first platform with comprehensive APIs that create switching costs and network effects as more applications build on its infrastructure.
Meta Platforms operates a family of social media and messaging apps — Facebook, Instagram, WhatsApp, and Messenger — that connect billions of users globally. It generates nearly all its revenue from digital advertising across these platforms, with its Reality Labs segment — which includes VR hardware and software — currently operating at a loss. The company's massive network effects and user data advantage create a powerful moat, making it difficult for competitors to challenge its dominant position in social media.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
META leads in 3 of 6 categories — strongest in Financial Metrics and Valuation Metrics. 2 categories are tied.
Financial Metrics (TTM)
META is the larger business by revenue, generating $201.0B annually — 39.7x TWLO's $5.1B. META is the more profitable business, keeping 30.1% of every revenue dollar as net income compared to TWLO's 0.7%. On growth, META holds the edge at +23.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TWLOTwilio Inc. | METAMeta Platforms, I… |
|---|---|---|
| RevenueTrailing 12 months | $5.1B | $201.0B |
| EBITDAEarnings before interest/tax | $380M | $101.9B |
| Net IncomeAfter-tax profit | $34M | $60.5B |
| Free Cash FlowCash after capex | $1.1B | $46.1B |
| Gross MarginGross profit ÷ Revenue | +49.0% | +82.0% |
| Operating MarginEBIT ÷ Revenue | +3.2% | +41.4% |
| Net MarginNet income ÷ Revenue | +0.7% | +30.1% |
| FCF MarginFCF ÷ Revenue | +21.7% | +22.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +14.3% | +23.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -2.8% | +10.6% |
Valuation Metrics
At 27.6x trailing earnings, META trades at a 95% valuation discount to TWLO's 576.0x P/E. On an enterprise value basis, META's 2.7x EV/EBITDA is more attractive than TWLO's 47.9x.
| Metric | TWLOTwilio Inc. | METAMeta Platforms, I… |
|---|---|---|
| Market CapShares × price | $18.3B | $222.3B |
| Enterprise ValueMkt cap + debt − cash | $18.8B | $270.3B |
| Trailing P/EPrice ÷ TTM EPS | 576.00x | 27.59x |
| Forward P/EPrice ÷ next-FY EPS est. | 22.30x | 21.80x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.50x |
| EV / EBITDAEnterprise value multiple | 47.92x | 2.65x |
| Price / SalesMarket cap ÷ Revenue | 3.62x | 1.11x |
| Price / BookPrice ÷ Book value/share | 2.47x | 7.68x |
| Price / FCFMarket cap ÷ FCF | 17.75x | 4.82x |
Profitability & Efficiency
META delivers a 27.8% return on equity — every $100 of shareholder capital generates $28 in annual profit, vs $0 for TWLO. TWLO carries lower financial leverage with a 0.15x debt-to-equity ratio, signaling a more conservative balance sheet compared to META's 0.39x. On the Piotroski fundamental quality scale (0–9), TWLO scores 6/9 vs META's 5/9, reflecting solid financial health.
| Metric | TWLOTwilio Inc. | METAMeta Platforms, I… |
|---|---|---|
| ROE (TTM)Return on equity | +0.4% | +27.8% |
| ROA (TTM)Return on assets | +0.3% | +16.5% |
| ROICReturn on invested capital | +1.5% | +27.6% |
| ROCEReturn on capital employed | +1.9% | +29.4% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.15x | 0.39x |
| Net DebtTotal debt minus cash | $453M | $48.0B |
| Cash & Equiv.Liquid assets | $682M | $35.9B |
| Total DebtShort + long-term debt | $1.1B | $83.9B |
| Interest CoverageEBIT ÷ Interest expense | — | 61.69x |
Total Returns (with DRIP)
A $10,000 investment in META five years ago would be worth $24,623 today (with dividends reinvested), compared to $2,909 for TWLO. Over the past 12 months, TWLO leads with a +0.9% total return vs META's -2.7%. The 3-year compound annual growth rate (CAGR) favors META at 55.1% vs TWLO's 21.6% — a key indicator of consistent wealth creation.
| Metric | TWLOTwilio Inc. | METAMeta Platforms, I… |
|---|---|---|
| YTD ReturnYear-to-date | -12.6% | -0.3% |
| 1-Year ReturnPast 12 months | +0.9% | -2.7% |
| 3-Year ReturnCumulative with dividends | +80.0% | +272.9% |
| 5-Year ReturnCumulative with dividends | -70.9% | +146.2% |
| 10-Year ReturnCumulative with dividends | +320.1% | +510.1% |
| CAGR (3Y)Annualised 3-year return | +21.6% | +55.1% |
Risk & Volatility
META is the less volatile stock with a 1.42 beta — it tends to amplify market swings less than TWLO's 1.56 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | TWLOTwilio Inc. | METAMeta Platforms, I… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.56x | 1.42x |
| 52-Week HighHighest price in past year | $145.90 | $796.25 |
| 52-Week LowLowest price in past year | $77.51 | $479.80 |
| % of 52W HighCurrent price vs 52-week peak | +82.9% | +81.4% |
| RSI (14)Momentum oscillator 0–100 | 52.2 | 50.4 |
| Avg Volume (50D)Average daily shares traded | 2.2M | 13.2M |
Analyst Outlook
Wall Street rates TWLO as "Buy" and META as "Buy". Consensus price targets imply 31.6% upside for META (target: $853) vs 17.2% for TWLO (target: $142). META is the only dividend payer here at 0.32% yield — a key consideration for income-focused portfolios.
| Metric | TWLOTwilio Inc. | METAMeta Platforms, I… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $141.75 | $853.00 |
| # AnalystsCovering analysts | 52 | 60 |
| Dividend YieldAnnual dividend ÷ price | — | +0.3% |
| Dividend StreakConsecutive years of raises | — | 2 |
| Dividend / ShareAnnual DPS | — | $2.07 |
| Buyback YieldShare repurchases ÷ mkt cap | +4.7% | +11.8% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Twilio Inc. (TWLO) | 100 | 113.88 | +13.9% |
| Meta Platforms, Inc. (META) | 100 | 380.02 | +280.0% |
Meta Platforms, Inc. (META) returned +146% over 5 years vs Twilio Inc. (TWLO)'s -71%. A $10,000 investment in META 5 years ago would be worth $24,623 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Twilio Inc. (TWLO) | $277M | $5.1B | +1727.1% |
| Meta Platforms, Inc. (META) | $27.6B | $201.0B | +627.1% |
Twilio Inc.'s revenue grew from $277M (2016) to $5.1B (2025) — a 38.1% CAGR. Meta Platforms, Inc.'s revenue grew from $27.6B (2016) to $201.0B (2025) — a 24.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Twilio Inc. (TWLO) | -14.9% | 0.7% | +104.5% |
| Meta Platforms, Inc. (META) | 36.9% | 30.1% | -18.4% |
Twilio Inc.'s net margin went from -15% (2016) to 1% (2025). Meta Platforms, Inc.'s net margin went from 37% (2016) to 30% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Meta Platforms, Inc. (META) | 32.7 | 28.1 | -14.1% |
Meta Platforms, Inc. has traded in a 14x–33x P/E range over 9 years; current trailing P/E is ~28x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Twilio Inc. (TWLO) | -0.47 | 0.21 | +144.7% |
| Meta Platforms, Inc. (META) | 3.49 | 23.49 | +573.1% |
Twilio Inc.'s EPS grew from $-0.47 (2016) to $0.21 (2025). Meta Platforms, Inc.'s EPS grew from $3.49 (2016) to $23.49 (2025) — a 24% CAGR.
Chart 6Free Cash Flow — 5 Years
Twilio Inc. generated $1B FCF in 2025 (+797% vs 2021). Meta Platforms, Inc. generated $46B FCF in 2025 (+18% vs 2021).
TWLO vs META: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TWLO or META a better buy right now?
Meta Platforms, Inc. (META) offers the better valuation at 27.6x trailing P/E (21.8x forward), making it the more compelling value choice. Analysts rate Twilio Inc. (TWLO) a "Buy" — based on 52 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 — TWLO or META?
On trailing P/E, Meta Platforms, Inc. (META) is the cheapest at 27.6x versus Twilio Inc. at 576.0x. On forward P/E, Meta Platforms, Inc. is actually cheaper at 21.8x.
03Which is the better long-term investment — TWLO or META?
Over the past 5 years, Meta Platforms, Inc. (META) delivered a total return of +146.2%, compared to -70.9% for Twilio Inc. (TWLO). A $10,000 investment in META five years ago would be worth approximately $25K today (assuming dividends reinvested). Over 10 years, the gap is even starker: META returned +510.1% versus TWLO's +320.1%. 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 — TWLO or META?
By beta (market sensitivity over 5 years), Meta Platforms, Inc. (META) is the lower-risk stock at 1.42β versus Twilio Inc.'s 1.56β — meaning TWLO is approximately 10% more volatile than META relative to the S&P 500. On balance sheet safety, Twilio Inc. (TWLO) carries a lower debt/equity ratio of 15% versus 39% for Meta Platforms, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TWLO or META?
Meta Platforms, Inc. (META) is the more profitable company, earning 30.1% net margin versus 0.7% for Twilio Inc. — meaning it keeps 30.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: META leads at 41.4% versus 3.4% for TWLO. At the gross margin level — before operating expenses — META leads at 82.0%, 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.
06Is TWLO or META more undervalued right now?
On forward earnings alone, Meta Platforms, Inc. (META) trades at 21.8x forward P/E versus 22.3x for Twilio Inc. — 0.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for META: 31.6% to $853.00.
07Which pays a better dividend — TWLO or META?
In this comparison, META (0.3% yield) pays a dividend. TWLO does not pay a meaningful dividend and should not be held primarily for income.
08Is TWLO or META better for a retirement portfolio?
For long-horizon retirement investors, Meta Platforms, Inc. (META) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+510.1% 10Y return). Twilio Inc. (TWLO) carries a higher beta of 1.56 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (META: +510.1%, TWLO: +320.1%), 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.
09What are the main differences between TWLO and META?
These companies operate in different sectors (TWLO (Communication Services) and META (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced. 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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