Cloudflare (NYSE:NET) and CrowdStrike (NASDAQ:CRWD) 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, dividends, valuation, risk, earnings, profitability and institutional ownership.
Institutional and Insider Ownership
54.8% of Cloudflare shares are owned by institutional investors. Comparatively, 60.0% of CrowdStrike shares are owned by institutional investors. 35.9% of Cloudflare shares are owned by company insiders. Comparatively, 11.3% of CrowdStrike shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Cloudflare has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500. Comparatively, CrowdStrike has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.
Earnings and Valuation
This table compares Cloudflare and CrowdStrike's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Cloudflare | $287.02 million | 79.88 | $-105,830,000.00 | ($0.72) | -103.11 |
| CrowdStrike | $481.41 million | 100.08 | $-141,780,000.00 | ($0.97) | -221.86 |
Cloudflare has higher earnings, but lower revenue than CrowdStrike. CrowdStrike is trading at a lower price-to-earnings ratio than Cloudflare, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cloudflare and CrowdStrike's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Cloudflare | -29.17% | -12.16% | -8.50% |
| CrowdStrike | -13.40% | -12.79% | -6.31% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Cloudflare and CrowdStrike, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Cloudflare | 0 | 5 | 15 | 0 | 2.75 |
| CrowdStrike | 0 | 4 | 20 | 0 | 2.83 |
Cloudflare presently has a consensus target price of $74.1111, suggesting a potential downside of 0.17%. CrowdStrike has a consensus target price of $231.72, suggesting a potential upside of 7.68%. Given CrowdStrike's stronger consensus rating and higher probable upside, analysts clearly believe CrowdStrike is more favorable than Cloudflare.
Summary
CrowdStrike beats Cloudflare on 9 of the 14 factors compared between the two stocks.
