Freshworks Inc. (FRSH) vs Life360, Inc. (LIF)

Freshworks Inc. and Life360, Inc. are both Software Application companies. Freshworks Inc. and Life360, Inc. are of similar size ($3.3B and $3.3B). Freshworks Inc. trades at the lower P/E: 19.3× against 22.1×. Life360, Inc. grew revenue faster over the last twelve months: 34.0% against 15.6%. Life360, Inc. has the higher net margin (25.7% vs 20.5%) and the lower return on invested capital (0.89% vs 8.20%). Across the 20 metrics below, Freshworks Inc. leads on 13 and Life360, Inc. on 7.

Valuation

Metric FRSH LIF Software Application median
P/E 19.29 22.05 24.79
P/S 3.77 5.83 2.67
P/B 3.81 5.45 3.01
Price to free cash flow 15.45 34.19 16.59
EV/EBITDA 30.73 n/m 14.40
EV/Sales 3.04 5.57 2.62
Earnings yield 5.18% 4.53% 0.00%
Free cash flow yield 6.47% 2.92% 1.91%

Profitability

Metric FRSH LIF Software Application median
Gross margin 84.96% 77.59% 67.03%
Operating margin 3.35% 1.14% 0.00%
Net margin 20.49% 25.72% 0.00%
Free cash flow margin 24.41% 17.38% 4.32%
Return on equity 19.70% 30.06% 0.00%
Return on assets 12.47% 16.32% 0.00%
Return on invested capital 8.20% 0.89% 0.00%

Growth

Metric FRSH LIF Software Application median
Revenue growth (TTM) 15.57% 33.96% 12.40%
EPS growth (last fiscal year) 296.88% 3,050.00% —
Revenue growth, 5-year CAGR 27.43% 43.42% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric FRSH LIF Software Application median
Debt to equity 0.00 0.51 0.02
Current ratio 1.69 5.60 1.55
Net debt to EBITDA (13.14) 2.17 0.06

Dividend

Metric FRSH LIF Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 — 0.00

Size

Metric FRSH LIF Software Application median
Market cap 3.34b 3.32b 396.11m

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