Slack Technologies (NYSE:WORK) and Fastly (NYSE:FSLY) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
Profitability
This table compares Slack Technologies and Fastly's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Slack Technologies | -42.73% | -39.14% | -17.81% |
Fastly | -24.07% | -14.37% | -12.13% |
Institutional and Insider Ownership
65.9% of Slack Technologies shares are owned by institutional investors. Comparatively, 54.7% of Fastly shares are owned by institutional investors. 26.8% of Slack Technologies shares are owned by insiders. Comparatively, 24.3% of Fastly shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Slack Technologies has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500. Comparatively, Fastly has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.
Valuation & Earnings
This table compares Slack Technologies and Fastly's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Slack Technologies | $630.42 million | 36.51 | $-571,060,000.00 | ($1.42) | -28.13 |
Fastly | $200.46 million | 33.45 | $-51,550,000.00 | ($0.70) | -93.56 |
Fastly has lower revenue, but higher earnings than Slack Technologies. Fastly is trading at a lower price-to-earnings ratio than Slack Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for Slack Technologies and Fastly, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Slack Technologies | 1 | 16 | 4 | 0 | 2.14 |
Fastly | 5 | 4 | 4 | 0 | 1.92 |
Slack Technologies currently has a consensus target price of $40.5789, indicating a potential upside of 1.57%. Fastly has a consensus target price of $78.6923, indicating a potential upside of 20.16%. Given Fastly's higher possible upside, analysts clearly believe Fastly is more favorable than Slack Technologies.
Summary
Fastly beats Slack Technologies on 7 of the 13 factors compared between the two stocks.