Analyzing Twitter (NYSE:TWTR) and Kodiak Sciences (NYSE:EVER)

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Twitter (NYSE:TWTR) and Kodiak Sciences (NASDAQ:EVER) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Institutional and Insider Ownership

71.9% of Twitter shares are owned by institutional investors. Comparatively, 60.9% of Kodiak Sciences shares are owned by institutional investors. 2.6% of Twitter shares are owned by company insiders. Comparatively, 45.7% of Kodiak Sciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Twitter and Kodiak Sciences, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twitter 4 25 10 0 2.15
Kodiak Sciences 0 0 0 0 N/A

Twitter presently has a consensus price target of $35.27, indicating a potential downside of 23.52%. Given Twitter’s higher probable upside, research analysts clearly believe Twitter is more favorable than Kodiak Sciences.

Profitability

This table compares Twitter and Kodiak Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twitter -32.54% -12.17% -8.11%
Kodiak Sciences -1.67% -9.24% -5.39%

Volatility & Risk

Twitter has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Kodiak Sciences has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Earnings and Valuation

This table compares Twitter and Kodiak Sciences’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Twitter $3.46 billion 10.54 $1.47 billion $1.99 23.18
Kodiak Sciences $248.81 million 4.29 -$7.12 million ($0.28) -139.46

Twitter has higher revenue and earnings than Kodiak Sciences. Kodiak Sciences is trading at a lower price-to-earnings ratio than Twitter, indicating that it is currently the more affordable of the two stocks.

Summary

Twitter beats Kodiak Sciences on 8 of the 13 factors compared between the two stocks.

About Twitter

Twitter, Inc. operates as a platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter, a platform that allows users to consume, create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable its advertisers to promote their brands, products, and services. In addition, the company offers a set of tools, public APIs, and embeddable widgets for developers to contribute their content to its platform, syndicate and distribute Twitter content across their properties, and enhance their Websites and applications with Twitter content. Further, it provides subscription access to its public data feed for data partners. The company operates in the United States and internationally. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California.

About Kodiak Sciences

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. Its online marketplace offers consumers shopping for auto, home and renters, life, health, and commercial insurance. The company serves carriers, agents, and indirect distributors and aggregators. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is headquartered in Cambridge, Massachusetts.

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