Financial Analysis: SS&C Technologies (NASDAQ:SSNC) and Twilio (NYSE:TWLO)

SS&C Technologies (NASDAQ:SSNC) and Twilio (NYSE:TWLO) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Volatility and Risk

SS&C Technologies has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Twilio has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Profitability

This table compares SS&C Technologies and Twilio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SS&C Technologies	12.33%	17.43%	6.50%
Twilio	-14.02%	-0.22%	-0.18%

Valuation & Earnings

This table compares SS&C Technologies and Twilio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SS&C Technologies	$5.50 billion	3.38	$607.10 million	$2.75	27.56
Twilio	$4.15 billion	2.73	-$1.02 billion	($3.29)	-21.46

SS&C Technologies has higher revenue and earnings than Twilio. Twilio is trading at a lower price-to-earnings ratio than SS&C Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for SS&C Technologies and Twilio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SS&C Technologies	0	3	5	0	2.63
Twilio	2	11	9	0	2.32

SS&C Technologies presently has a consensus target price of $73.75, indicating a potential downside of 2.69%. Twilio has a consensus target price of $71.00, indicating a potential upside of 2.25%. Given Twilio’s higher probable upside, analysts clearly believe Twilio is more favorable than SS&C Technologies.

Insider and Institutional Ownership

97.0% of SS&C Technologies shares are held by institutional investors. Comparatively, 84.3% of Twilio shares are held by institutional investors. 15.4% of SS&C Technologies shares are held by company insiders. Comparatively, 4.5% of Twilio shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

SS&C Technologies beats Twilio on 12 of the 14 factors compared between the two stocks.

About SS&C Technologies

SS&C Technologies Holdings, Inc., together with its subsidiaries, provides software products and software-enabled services to financial services and healthcare industries. The company owns and operates technology stack across securities accounting; front-office functions, such as trading and modeling; middle-office functions comprising portfolio management and reporting; back-office functions, such as accounting, performance measurement, reconciliation, reporting, processing and clearing, and compliance and tax reporting; and healthcare solutions consisting of claims adjudication, benefit management, care management, and business intelligence solutions. Its products and services allow professionals in the financial services and healthcare industries to automate complex business processes and are instrumental in helping its clients to manage information processing requirements. The company's software-enabled services include SS&C GlobeOp, Global Investor and Distribution Solutions, SS&C Retirement Solutions, Black Diamond Wealth Platform, CRM Solutions, Advent Managed Services, Advent Data Solutions, ALPS Advisors, and Virtual Data Rooms, as well as pharmacy, healthcare administration, and health outcomes optimization solutions. Its software products comprise portfolio/investment accounting and analytics software, portfolio management software, trading software, automation solutions, and banking and lending solutions, as well as research, analytics, risk, and training solutions. The company also provides professional services that includes consulting and implementation services consisting of initial system installation, conversion of historical data, and ongoing training and support, as well as product support services. It operates in the United States; Europe, the Middle East, and Africa; the Asia Pacific and Japan; Canada; and the Americas. The company was founded in 1986 and is headquartered in Windsor, Connecticut.

About Twilio

Twilio Inc., together with its subsidiaries, provides customer engagement platform solutions in the United States and internationally. It operates through two segments, Twilio Communications and Twilio Segment. The company provides various application programming interfaces and software solutions for communications between customers and end users, including messaging, voice, email, flex, marketing campaigns, and user identity and authentication. It also offers software products to build direct, personalized relationships with their end users, such as segment, a platform that provides tools for first-party data by unifying real-time information collected; and engage, an automation platform for the delivery of omnichannel campaigns. Twilio Inc. was incorporated in 2008 and is headquartered in San Francisco, California.