Analyzing Rosetta Stone (RST) & Twilio (TWLO)

Twilio (NYSE: TWLO) and Rosetta Stone (NYSE:RST) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings for Twilio and Rosetta Stone, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twilio 1 2 12 0 2.73
Rosetta Stone 0 0 1 0 3.00

Twilio presently has a consensus price target of $37.17, indicating a potential upside of 12.59%. Rosetta Stone has a consensus price target of $15.00, indicating a potential upside of 10.05%. Given Twilio’s higher probable upside, research analysts plainly believe Twilio is more favorable than Rosetta Stone.

Institutional and Insider Ownership

55.4% of Twilio shares are owned by institutional investors. Comparatively, 73.8% of Rosetta Stone shares are owned by institutional investors. 25.0% of Twilio shares are owned by company insiders. Comparatively, 14.5% of Rosetta Stone shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.


This table compares Twilio and Rosetta Stone’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twilio -15.97% -19.65% -15.75%
Rosetta Stone -4.97% N/A -3.43%

Valuation and Earnings

This table compares Twilio and Rosetta Stone’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Twilio $399.02 million 7.70 -$63.71 million ($0.70) -47.16
Rosetta Stone $194.09 million 1.57 -$27.55 million ($0.42) -32.45

Rosetta Stone has lower revenue, but higher earnings than Twilio. Twilio is trading at a lower price-to-earnings ratio than Rosetta Stone, indicating that it is currently the more affordable of the two stocks.


Rosetta Stone beats Twilio on 8 of the 13 factors compared between the two stocks.

Twilio Company Profile

Twilio Inc. offers Cloud Communications Platform, which enables developers to build, scale and operate real-time communications within software applications. The Company’s platform consists of Programmable Communications Cloud, Super Network and Business Model for Innovators. Its Programmable Communications Cloud software enables developers to embed voice, messaging, video and authentication capabilities into their applications through its Application Programming Interfaces (APIs). Its Programmable Communications Cloud offers building blocks that enable its customers to build what they need. Its Programmable Communications Cloud includes Programmable Voice, Programmable Messaging, Programmable Video and Use Case APIs. The Super Network is its software layer that allows its customers’ software to communicate with connected devices globally. It interconnects with communications networks around the world.

Rosetta Stone Company Profile

Rosetta Stone Inc. (Rosetta Stone) offers personalized language and reading programs. The Company’s solutions are used by schools, businesses, government organizations and individuals around the world. Its segments include Enterprise & Education, which derives revenues from sales to educational institutions, corporations and government agencies worldwide, and Consumer, which derives revenue from sales to individuals and retail partners. Its cloud-based programs allow users to learn online or on-the-go via tablet or smartphone, whether in a classroom, corporate setting, or personal learning environment. Its Fit Brains business offers personalized brain training programs. The Company offers courses in over 30 languages across formats, including Web-based software subscriptions, digital downloads, mobile applications, and perpetual compact disc packages. It also offers a portfolio of technology-based learning products for personal use to the global consumer.

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