Freshworks and Klaviyo: A Business Comparison

Analyzing the performance and potential of two leading tech companies

Apr. 18, 2026 at 4:25pm

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Klaviyo (NYSE:KVYO) and Freshworks (NASDAQ:FRSH) are both mid-cap computer and technology companies, but which is the better investment? This analysis compares the two businesses based on factors like profitability, valuation, institutional ownership, and analyst recommendations to determine which stock offers more favorable growth prospects.

Why it matters

This comparison provides valuable insights for investors looking to allocate capital in the competitive software and technology sector. Understanding the relative strengths and weaknesses of Klaviyo and Freshworks can help inform investment decisions and identify the company best positioned for long-term success.

The details

Key differences between Klaviyo and Freshworks include Klaviyo's stronger institutional ownership at 75.6% compared to Freshworks' 45.4%, as well as Klaviyo's higher return on equity and return on assets. Analysts also have a more favorable consensus rating and higher price target for Klaviyo, suggesting it is seen as the more promising investment. However, Freshworks has higher earnings per share and a lower price-to-earnings ratio, making it potentially more affordable at current valuations.

  • The analysis is based on the latest available financial data as of April 18, 2026.

The players

Klaviyo, Inc.

A technology company that provides a cloud-based software-as-a-service platform for data, segmentation, campaigns, and messaging.

Freshworks Inc.

A software development company that offers a suite of customer service, sales, and employee service solutions as software-as-a-service products.

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What’s next

Investors should continue to monitor the financial performance, market positioning, and competitive dynamics of both Klaviyo and Freshworks to determine which company is best suited for their investment goals and risk tolerance.

The takeaway

This analysis highlights the nuanced differences between two leading technology companies, Klaviyo and Freshworks, providing investors with a more informed basis to evaluate the relative merits of each stock as a potential investment opportunity.