CoreWeave (NASDAQ:CRWV – Get Free Report) and Cloudflare (NYSE:NET – Get Free Report) are both large-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Valuation and Earnings
This table compares CoreWeave and Cloudflare”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CoreWeave | $5.13 billion | 5.06 | -$1.17 billion | ($3.65) | -15.51 |
| Cloudflare | $2.17 billion | 52.11 | -$102.27 million | ($0.68) | -470.02 |
Cloudflare has lower revenue, but higher earnings than CoreWeave. Cloudflare is trading at a lower price-to-earnings ratio than CoreWeave, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
CoreWeave has a beta of 7.71, meaning that its share price is 671% more volatile than the S&P 500. Comparatively, Cloudflare has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for CoreWeave and Cloudflare, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CoreWeave | 4 | 8 | 26 | 0 | 2.58 |
| Cloudflare | 3 | 7 | 26 | 0 | 2.64 |
CoreWeave currently has a consensus price target of $116.66, indicating a potential upside of 106.11%. Cloudflare has a consensus price target of $338.48, indicating a potential upside of 5.90%. Given CoreWeave’s higher possible upside, equities analysts clearly believe CoreWeave is more favorable than Cloudflare.
Profitability
This table compares CoreWeave and Cloudflare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CoreWeave | -25.56% | -59.42% | -4.28% |
| Cloudflare | -8.75% | -6.05% | -1.39% |
Insider and Institutional Ownership
82.7% of Cloudflare shares are held by institutional investors. 24.2% of CoreWeave shares are held by company insiders. Comparatively, 10.7% of Cloudflare shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Cloudflare beats CoreWeave on 8 of the 13 factors compared between the two stocks.
About CoreWeave
CoreWeave is a cloud computing company that provides infrastructure for artificial intelligence, machine learning, and other compute-intensive workloads. Its services include access to graphics processing units (GPUs), cloud storage and networking, and software tools for deploying and managing workloads. The company was founded in 2017 as a cryptocurrency mining business and later shifted its focus to cloud computing. CoreWeave is headquartered in Livingston, New Jersey, and operates data center infrastructure in the United States and Europe, serving customers that need large-scale computing resources.
About Cloudflare
Cloudflare, Inc. provides cloud-based services that help businesses and other organizations protect, connect and improve the performance of websites, applications and networks. Its global network delivers services including content delivery, domain name system management, and protection against distributed denial-of-service attacks and other cyber threats. The company also offers web application security, bot management and Zero Trust services for securing access to applications and internal networks.
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