Comprehensive Stock Comparison
Compare HubSpot, Inc. (HUBS) vs Freshworks Inc. (FRSH) 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 | FRSH | 20.8% revenue growth vs HUBS's 19.2% |
| Value | FRSH | Lower P/E (13.7x vs 21.3x) |
| Quality / Margins | FRSH | 21.9% net margin vs HUBS's -0.1% |
| Stability / Safety | FRSH | Beta 1.31 vs HUBS's 1.43, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | FRSH | -54.2% vs HUBS's -63.5% |
| Efficiency (ROA) | FRSH | 11.5% ROA vs HUBS's -0.1%, ROIC -17.8% vs 0.3% |
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
HubSpot is a cloud-based customer relationship management platform that helps businesses attract, engage, and delight customers through integrated marketing, sales, and service tools. It generates revenue primarily through subscription fees for its software platform—with pricing tiers based on features and usage—and secondarily through professional services and training. The company's key advantage is its unified, easy-to-use platform that seamlessly connects marketing, sales, and customer service functions, creating a sticky ecosystem that grows with customers' needs.
Freshworks provides cloud-based customer engagement software for businesses of all sizes. It generates revenue primarily through subscription fees for its suite of products — including Freshdesk for customer support (~40% of revenue), Freshsales for CRM (~30%), and other tools for marketing and IT service management. The company's key advantage is its unified, user-friendly platform that integrates multiple business functions, allowing customers to avoid the complexity of managing separate point solutions from different vendors.
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
FRSH leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). HUBS leads in 1 (Total Returns). 1 tied.
Financial Metrics (TTM)
HUBS is the larger business by revenue, generating $3.0B annually — 3.6x FRSH's $839M. FRSH is the more profitable business, keeping 21.9% of every revenue dollar as net income compared to HUBS's -0.1%. On growth, HUBS holds the edge at +20.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | HUBSHubSpot, Inc. | FRSHFreshworks Inc. |
|---|---|---|
| RevenueTrailing 12 months | $3.0B | $839M |
| EBITDAEarnings before interest/tax | $41M | $30M |
| Net IncomeAfter-tax profit | -$4M | $184M |
| Free Cash FlowCash after capex | $655M | $232M |
| Gross MarginGross profit ÷ Revenue | +84.1% | +85.0% |
| Operating MarginEBIT ÷ Revenue | -1.7% | +1.6% |
| Net MarginNet income ÷ Revenue | -0.1% | +21.9% |
| FCF MarginFCF ÷ Revenue | +21.9% | +27.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +20.9% | +14.5% |
| EPS Growth (YoY)Latest quarter vs prior year | +93.8% | +10.3% |
Valuation Metrics
| Metric | HUBSHubSpot, Inc. | FRSHFreshworks Inc. |
|---|---|---|
| Market CapShares × price | $13.8B | $2.4B |
| Enterprise ValueMkt cap + debt − cash | $13.2B | $1.8B |
| Trailing P/EPrice ÷ TTM EPS | 307.57x | -24.44x |
| Forward P/EPrice ÷ next-FY EPS est. | 21.30x | 13.75x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 1787.77x | — |
| Price / SalesMarket cap ÷ Revenue | 4.41x | 3.29x |
| Price / BookPrice ÷ Book value/share | 6.81x | 2.07x |
| Price / FCFMarket cap ÷ FCF | 19.52x | 16.25x |
Profitability & Efficiency
FRSH delivers a 17.8% return on equity — every $100 of shareholder capital generates $18 in annual profit, vs $-0 for HUBS. FRSH carries lower financial leverage with a 0.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to HUBS's 0.13x. On the Piotroski fundamental quality scale (0–9), HUBS scores 6/9 vs FRSH's 5/9, reflecting solid financial health.
| Metric | HUBSHubSpot, Inc. | FRSHFreshworks Inc. |
|---|---|---|
| ROE (TTM)Return on equity | -0.2% | +17.8% |
| ROA (TTM)Return on assets | -0.1% | +11.5% |
| ROICReturn on invested capital | +0.3% | -17.8% |
| ROCEReturn on capital employed | +0.3% | -11.9% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.13x | 0.03x |
| Net DebtTotal debt minus cash | -$620M | -$582M |
| Cash & Equiv.Liquid assets | $882M | $620M |
| Total DebtShort + long-term debt | $262M | $38M |
| Interest CoverageEBIT ÷ Interest expense | 12.40x | — |
Total Returns (with DRIP)
A $10,000 investment in HUBS five years ago would be worth $5,023 today (with dividends reinvested), compared to $1,645 for FRSH. Over the past 12 months, FRSH leads with a -54.2% total return vs HUBS's -63.5%. The 3-year compound annual growth rate (CAGR) favors HUBS at -11.9% vs FRSH's -19.4% — a key indicator of consistent wealth creation.
| Metric | HUBSHubSpot, Inc. | FRSHFreshworks Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -30.8% | -32.6% |
| 1-Year ReturnPast 12 months | -63.5% | -54.2% |
| 3-Year ReturnCumulative with dividends | -31.6% | -47.7% |
| 5-Year ReturnCumulative with dividends | -49.8% | -83.6% |
| 10-Year ReturnCumulative with dividends | +534.9% | -83.6% |
| CAGR (3Y)Annualised 3-year return | -11.9% | -19.4% |
Risk & Volatility
FRSH is the less volatile stock with a 1.31 beta — it tends to amplify market swings less than HUBS's 1.43 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. FRSH currently trades 45.4% from its 52-week high vs HUBS's 36.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | HUBSHubSpot, Inc. | FRSHFreshworks Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.43x | 1.31x |
| 52-Week HighHighest price in past year | $732.00 | $17.21 |
| 52-Week LowLowest price in past year | $207.20 | $6.79 |
| % of 52W HighCurrent price vs 52-week peak | +36.1% | +45.4% |
| RSI (14)Momentum oscillator 0–100 | 51.0 | 40.1 |
| Avg Volume (50D)Average daily shares traded | 1.3M | 4.6M |
Analyst Outlook
Wall Street rates HUBS as "Buy" and FRSH as "Buy". Consensus price targets imply 46.2% upside for FRSH (target: $11) vs 44.8% for HUBS (target: $383).
| Metric | HUBSHubSpot, Inc. | FRSHFreshworks Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $383.00 | $11.43 |
| # AnalystsCovering analysts | 47 | 18 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +3.6% | +0.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Oct 21 | Feb 26 | Change |
|---|---|---|---|
| HubSpot, Inc. (HUBS) | 100 | 40.05 | -59.9% |
| Freshworks Inc. (FRSH) | 88.1 | 22.42 | -74.6% |
HubSpot, Inc. (HUBS) returned -50% over 5 years vs Freshworks Inc. (FRSH)'s -84%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| HubSpot, Inc. (HUBS) | $271M | $3.1B | +1055.6% |
| Freshworks Inc. (FRSH) | $127M | $720M | +467.8% |
HubSpot, Inc.'s revenue grew from $271M (2016) to $3.1B (2025) — a 31.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| HubSpot, Inc. (HUBS) | -16.8% | 3.0% | +117.7% |
| Freshworks Inc. (FRSH) | 2.1% | -13.2% | -734.1% |
HubSpot, Inc.'s net margin went from -17% (2016) to 3% (2025).
Chart 4EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| HubSpot, Inc. (HUBS) | -1.29 | 0.86 | +166.7% |
| Freshworks Inc. (FRSH) | 0.16 | -0.32 | -300.0% |
HubSpot, Inc.'s EPS grew from $-1.29 (2016) to $0.86 (2025).
Chart 5Free Cash Flow — 5 Years
HubSpot, Inc. generated $708M FCF in 2025 (+300% vs 2021). Freshworks Inc. generated $146M FCF in 2024 (+6131% vs 2021).
HUBS vs FRSH: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is HUBS or FRSH a better buy right now?
HubSpot, Inc. (HUBS) offers the better valuation at 307.6x trailing P/E (21.3x forward), making it the more compelling value choice. Analysts rate HubSpot, Inc. (HUBS) a "Buy" — based on 47 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 — HUBS or FRSH?
On forward P/E, Freshworks Inc. is actually cheaper at 13.7x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — HUBS or FRSH?
Over the past 5 years, HubSpot, Inc. (HUBS) delivered a total return of -49.8%, compared to -83.6% for Freshworks Inc. (FRSH). A $10,000 investment in HUBS five years ago would be worth approximately $5K today (assuming dividends reinvested). Over 10 years, the gap is even starker: HUBS returned +534.9% versus FRSH's -83.6%. 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 — HUBS or FRSH?
By beta (market sensitivity over 5 years), Freshworks Inc. (FRSH) is the lower-risk stock at 1.31β versus HubSpot, Inc.'s 1.43β — meaning HUBS is approximately 9% more volatile than FRSH relative to the S&P 500. On balance sheet safety, Freshworks Inc. (FRSH) carries a lower debt/equity ratio of 3% versus 13% for HubSpot, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — HUBS or FRSH?
HubSpot, Inc. (HUBS) is the more profitable company, earning 3.0% net margin versus -13.2% for Freshworks Inc. — meaning it keeps 3.0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HUBS leads at 0.2% versus -19.2% for FRSH. At the gross margin level — before operating expenses — FRSH leads at 84.3%, 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 HUBS or FRSH more undervalued right now?
On forward earnings alone, Freshworks Inc. (FRSH) trades at 13.7x forward P/E versus 21.3x for HubSpot, Inc. — 7.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FRSH: 46.2% to $11.43.
07Which pays a better dividend — HUBS or FRSH?
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.
08Is HUBS or FRSH 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 (+534.9% 10Y return). Both have compounded well over 10 years (HUBS: +534.9%, FRSH: -83.6%), 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 HUBS and FRSH?
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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