Reviewing Cloudflare (NYSE:NET) & Blackline (NYSE:BL)

Cloudflare (NYSE:NET) and Blackline (NASDAQ:BL) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Earnings and Valuation

This table compares Cloudflare and Blackline’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cloudflare $192.67 million 27.66 -$87.16 million N/A N/A
Blackline $227.79 million 16.26 -$27.80 million ($0.26) -255.96

Blackline has higher revenue and earnings than Cloudflare.

Institutional and Insider Ownership

18.0% of Cloudflare shares are owned by institutional investors. Comparatively, 91.3% of Blackline shares are owned by institutional investors. 15.8% of Blackline shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cloudflare and Blackline, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cloudflare 0 3 10 0 2.77
Blackline 1 1 5 0 2.57

Cloudflare currently has a consensus target price of $21.27, indicating a potential upside of 19.83%. Blackline has a consensus target price of $63.43, indicating a potential downside of 4.69%. Given Cloudflare’s stronger consensus rating and higher probable upside, research analysts clearly believe Cloudflare is more favorable than Blackline.

Profitability

This table compares Cloudflare and Blackline’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cloudflare N/A N/A N/A
Blackline -11.36% -4.36% -2.38%

Summary

Cloudflare beats Blackline on 7 of the 11 factors compared between the two stocks.

About Cloudflare

CloudFlare, Inc. operates a cloud platform that delivers a range of network services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and Internet of Things (IoT) devices. Its security products comprise Cloud Firewall, Bot Management, Distributed Denial of Service, Infrastructure Protection, Zero Trust Security, IoT, SSL/TLS, Secure Origin Connection, and Rate Limiting. The company also offers performance solutions, which include Content Delivery, Intelligent Routing, and Mobile Software Development Kit, as well as Content, Mobile, and Image Optimization. In addition, it provides Reliability solutions comprising Load Balancing, Anycast Network, Virtual Backbone, DNS, DNS Resolver, and Always Online. The company serves customers in the consumer/retail, healthcare/life sciences, software, education/non-profit, industrial/transportation, media/entertainment, finance/real estate, and hardware industries, as well as to the government. CloudFlare, Inc. has a strategic agreement with Baidu, Inc. The company was founded in 2009 and is headquartered in San Francisco, California.

About Blackline

BlackLine, Inc. provides financial accounting close solutions delivered primarily as Software as a Service in the United States and internationally. Its solutions enable its customers to address various aspects of their financial closing process, including account reconciliations, variance analysis of account balances, journal entry capabilities, and range of data matching capabilities. The company's platform consists of nine core cloud-based products, including Transaction Matching, Account Reconciliations, Consolidation Integrity Manager, Daily Reconciliations, Journal Entry, Variance Analysis, Task Management, Compliance, and Insights. Its solutions include balance sheet integrity, close process management, accounting process automation, finance transformation, intercompany hub, and smart close. The company designs its products to complement enterprise resource planning and other financial systems, including NetSuite, Oracle, SAP, and Workday; and financial close management and accounting automation from within a single, unified cloud platform. It has strategic alliances with technology vendors, such as SAP and NetSuite; professional services firms, including Deloitte, Ernst & Young, and KPMG; and business process outsourcers, such as Cognizant, Genpact, and IBM. The company sells its solutions primarily through direct sales force to multinational corporations, large domestic enterprises and mid-market companies across various industries. The company was founded in 2001 and is headquartered in Woodland Hills, California.

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