CrowdStrike (NASDAQ:CRWD) and Avalara (NYSE:AVLR) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Volatility and Risk
CrowdStrike has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Avalara has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.
Profitability
This table compares CrowdStrike and Avalara's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
CrowdStrike | -13.40% | -12.79% | -6.31% |
Avalara | -10.89% | -6.97% | -4.52% |
Analyst Ratings
This is a summary of recent ratings and price targets for CrowdStrike and Avalara, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
CrowdStrike | 0 | 4 | 19 | 0 | 2.83 |
Avalara | 0 | 1 | 11 | 0 | 2.92 |
CrowdStrike currently has a consensus target price of $211.5417, suggesting a potential upside of 17.69%. Avalara has a consensus target price of $190.8571, suggesting a potential upside of 41.81%. Given Avalara's stronger consensus rating and higher possible upside, analysts plainly believe Avalara is more favorable than CrowdStrike.
Insider & Institutional Ownership
60.0% of CrowdStrike shares are held by institutional investors. Comparatively, 88.6% of Avalara shares are held by institutional investors. 11.3% of CrowdStrike shares are held by insiders. Comparatively, 4.0% of Avalara shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares CrowdStrike and Avalara's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
CrowdStrike | $481.41 million | 82.62 | $-141,780,000.00 | ($0.97) | -185.31 |
Avalara | $382.42 million | 30.07 | $-50,210,000.00 | ($0.59) | -228.12 |
Avalara has lower revenue, but higher earnings than CrowdStrike. Avalara is trading at a lower price-to-earnings ratio than CrowdStrike, indicating that it is currently the more affordable of the two stocks.
Summary
Avalara beats CrowdStrike on 9 of the 14 factors compared between the two stocks.