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WEN vs FRSH
Revenue, margins, valuation, and 5-year total return — side by side.
Software - Application
WEN vs FRSH — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Restaurants | Software - Application |
| Market Cap | $1.27B | $2.58B |
| Revenue (TTM) | $2.21B | $871M |
| Net Income (TTM) | $186M | $180M |
| Gross Margin | 35.6% | 85.0% |
| Operating Margin | 16.8% | 1.8% |
| Forward P/E | 11.5x | 15.6x |
| Total Debt | $4.09B | $67M |
| Cash & Equiv. | $451M | $632M |
WEN vs FRSH — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | Sep 21 | May 26 | Return |
|---|---|---|---|
| The Wendy's Company (WEN) | 100 | 30.7 | -69.3% |
| Freshworks Inc. (FRSH) | 100 | 20.8 | -79.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: WEN vs FRSH
Each card shows where this stock fits in a portfolio — not just who wins on paper.
WEN is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 4 yrs, beta 0.52, yield 15.0%
- 8.5% 10Y total return vs FRSH's -81.4%
- Lower volatility, beta 0.52, current ratio 1.85x
FRSH carries the broadest edge in this set and is the clearest fit for growth exposure.
- Rev growth 16.4%, EPS growth 296.9%, 3Y rev CAGR 19.0%
- 16.4% revenue growth vs WEN's 3.0%
- 20.7% margin vs WEN's 8.4%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 16.4% revenue growth vs WEN's 3.0% | |
| Value | Lower P/E (11.5x vs 15.6x) | |
| Quality / Margins | 20.7% margin vs WEN's 8.4% | |
| Stability / Safety | Beta 0.52 vs FRSH's 1.15 | |
| Dividends | 15.0% yield; 4-year raise streak; the other pay no meaningful dividend | |
| Momentum (1Y) | -37.9% vs WEN's -39.3% | |
| Efficiency (ROA) | 11.9% ROA vs WEN's 3.7%, ROIC 2.0% vs 7.1% |
WEN vs FRSH — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
WEN vs FRSH — 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)
WEN is the larger business by revenue, generating $2.2B annually — 2.5x FRSH's $871M. FRSH is the more profitable business, keeping 20.7% of every revenue dollar as net income compared to WEN's 8.4%. On growth, FRSH holds the edge at +16.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $2.2B | $871M |
| EBITDAEarnings before interest/tax | $530M | $41M |
| Net IncomeAfter-tax profit | $186M | $180M |
| Free Cash FlowCash after capex | $238M | $254M |
| Gross MarginGross profit ÷ Revenue | +35.6% | +85.0% |
| Operating MarginEBIT ÷ Revenue | +16.8% | +1.8% |
| Net MarginNet income ÷ Revenue | +8.4% | +20.7% |
| FCF MarginFCF ÷ Revenue | +10.8% | +29.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | -3.0% | +16.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -8.0% | — |
Valuation Metrics
WEN leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 7.0x trailing earnings, WEN trades at a 50% valuation discount to FRSH's 14.1x P/E. On an enterprise value basis, WEN's 9.3x EV/EBITDA is more attractive than FRSH's 28.3x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $1.3B | $2.6B |
| Enterprise ValueMkt cap + debt − cash | $4.9B | $2.0B |
| Trailing P/EPrice ÷ TTM EPS | 7.00x | 14.07x |
| Forward P/EPrice ÷ next-FY EPS est. | 11.55x | 15.58x |
| PEG RatioP/E ÷ EPS growth rate | 0.67x | — |
| EV / EBITDAEnterprise value multiple | 9.27x | 28.31x |
| Price / SalesMarket cap ÷ Revenue | 0.56x | 3.08x |
| Price / BookPrice ÷ Book value/share | 5.27x | 2.52x |
| Price / FCFMarket cap ÷ FCF | 4.85x | 10.52x |
Profitability & Efficiency
FRSH leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
WEN delivers a 170.4% return on equity — every $100 of shareholder capital generates $170 in annual profit, vs $19 for FRSH. FRSH carries lower financial leverage with a 0.06x debt-to-equity ratio, signaling a more conservative balance sheet compared to WEN's 15.78x. On the Piotroski fundamental quality scale (0–9), FRSH scores 7/9 vs WEN's 5/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +170.4% | +18.5% |
| ROA (TTM)Return on assets | +3.7% | +11.9% |
| ROICReturn on invested capital | +7.1% | +2.0% |
| ROCEReturn on capital employed | +7.9% | +1.2% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 15.78x | 0.06x |
| Net DebtTotal debt minus cash | $3.6B | -$566M |
| Cash & Equiv.Liquid assets | $451M | $632M |
| Total DebtShort + long-term debt | $4.1B | $67M |
| Interest CoverageEBIT ÷ Interest expense | 2.86x | — |
Total Returns (Dividends Reinvested)
Evenly matched — WEN and FRSH each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in WEN five years ago would be worth $4,518 today (with dividends reinvested), compared to $1,864 for FRSH. Over the past 12 months, FRSH leads with a -37.9% total return vs WEN's -39.3%. The 3-year compound annual growth rate (CAGR) favors FRSH at -13.0% vs WEN's -26.1% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -16.9% | -23.6% |
| 1-Year ReturnPast 12 months | -39.3% | -37.9% |
| 3-Year ReturnCumulative with dividends | -59.7% | -34.2% |
| 5-Year ReturnCumulative with dividends | -54.8% | -81.4% |
| 10-Year ReturnCumulative with dividends | +8.5% | -81.4% |
| CAGR (3Y)Annualised 3-year return | -26.1% | -13.0% |
Risk & Volatility
Evenly matched — WEN and FRSH each lead in 1 of 2 comparable metrics.
Risk & Volatility
WEN is the less volatile stock with a 0.52 beta — it tends to amplify market swings less than FRSH's 1.15 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.52x | 1.15x |
| 52-Week HighHighest price in past year | $12.52 | $16.14 |
| 52-Week LowLowest price in past year | $6.37 | $6.79 |
| % of 52W HighCurrent price vs 52-week peak | +53.1% | +54.9% |
| RSI (14)Momentum oscillator 0–100 | 41.0 | 64.6 |
| Avg Volume (50D)Average daily shares traded | 7.7M | 7.7M |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates WEN as "Hold" and FRSH as "Buy". Consensus price targets imply 28.9% upside for FRSH (target: $11) vs 16.2% for WEN (target: $8). WEN is the only dividend payer here at 14.95% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $7.73 | $11.43 |
| # AnalystsCovering analysts | 51 | 18 |
| Dividend YieldAnnual dividend ÷ price | +15.0% | — |
| Dividend StreakConsecutive years of raises | 4 | — |
| Dividend / ShareAnnual DPS | $0.99 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +6.1% | +15.0% |
FRSH leads in 2 of 6 categories (Income & Cash Flow, Profitability & Efficiency). WEN leads in 1 (Valuation Metrics). 2 tied.
WEN vs FRSH: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is WEN or FRSH a better buy right now?
For growth investors, Freshworks Inc.
(FRSH) is the stronger pick with 16. 4% revenue growth year-over-year, versus 3. 0% for The Wendy's Company (WEN). The Wendy's Company (WEN) offers the better valuation at 7. 0x trailing P/E (11. 5x 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 — WEN or FRSH?
On trailing P/E, The Wendy's Company (WEN) is the cheapest at 7.
0x versus Freshworks Inc. at 14. 1x. On forward P/E, The Wendy's Company is actually cheaper at 11. 5x.
03Which is the better long-term investment — WEN or FRSH?
Over the past 5 years, The Wendy's Company (WEN) delivered a total return of -54.
8%, compared to -81. 4% for Freshworks Inc. (FRSH). Over 10 years, the gap is even starker: WEN returned +8. 5% versus FRSH's -81. 4%. 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 — WEN or FRSH?
By beta (market sensitivity over 5 years), The Wendy's Company (WEN) is the lower-risk stock at 0.
52β versus Freshworks Inc. 's 1. 15β — meaning FRSH is approximately 120% more volatile than WEN relative to the S&P 500. On balance sheet safety, Freshworks Inc. (FRSH) carries a lower debt/equity ratio of 6% versus 16% for The Wendy's Company — giving it more financial flexibility in a downturn.
05Which is growing faster — WEN or FRSH?
By revenue growth (latest reported year), Freshworks Inc.
(FRSH) is pulling ahead at 16. 4% versus 3. 0% for The Wendy's Company (WEN). On earnings-per-share growth, the picture is similar: Freshworks Inc. grew EPS 296. 9% year-over-year, compared to -2. 1% for The Wendy's Company. Over a 3-year CAGR, FRSH leads at 19. 0% 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 — WEN or FRSH?
Freshworks Inc.
(FRSH) is the more profitable company, earning 21. 9% net margin versus 8. 7% for The Wendy's Company — meaning it keeps 21. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WEN leads at 16. 5% versus 1. 6% for FRSH. 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 WEN or FRSH more undervalued right now?
On forward earnings alone, The Wendy's Company (WEN) trades at 11.
5x forward P/E versus 15. 6x for Freshworks Inc. — 4. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FRSH: 28. 9% to $11. 43.
08Which pays a better dividend — WEN or FRSH?
In this comparison, WEN (15.
0% yield) pays a dividend. FRSH does not pay a meaningful dividend and should not be held primarily for income.
09Is WEN or FRSH better for a retirement portfolio?
For long-horizon retirement investors, The Wendy's Company (WEN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
52), 15. 0% yield). Both have compounded well over 10 years (WEN: +8. 5%, FRSH: -81. 4%), 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 WEN and FRSH?
These companies operate in different sectors (WEN (Consumer Cyclical) and FRSH (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: WEN is a small-cap deep-value stock; FRSH is a small-cap high-growth stock. WEN pays a dividend while FRSH does not, making them suitable for different income and tax situations. 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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