Braze (NASDAQ:BRZE – Get Free Report) and Cloudflare (NYSE:NET – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
Valuation and Earnings
This table compares Braze and Cloudflare”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Braze | $738.18 million | 3.50 | -$131.29 million | ($1.12) | -20.46 |
| Cloudflare | $2.17 billion | 40.82 | -$102.27 million | ($0.25) | -1,001.40 |
Profitability
This table compares Braze and Cloudflare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Braze | -15.51% | -17.52% | -9.88% |
| Cloudflare | -3.72% | -5.65% | -1.34% |
Volatility and Risk
Braze has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Cloudflare has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Braze and Cloudflare, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Braze | 1 | 0 | 19 | 0 | 2.90 |
| Cloudflare | 3 | 7 | 18 | 0 | 2.54 |
Braze currently has a consensus target price of $35.00, indicating a potential upside of 52.77%. Cloudflare has a consensus target price of $239.08, indicating a potential downside of 4.50%. Given Braze’s stronger consensus rating and higher possible upside, equities analysts clearly believe Braze is more favorable than Cloudflare.
Institutional and Insider Ownership
90.5% of Braze shares are held by institutional investors. Comparatively, 82.7% of Cloudflare shares are held by institutional investors. 12.5% of Braze shares are held by insiders. Comparatively, 10.9% of Cloudflare shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Cloudflare beats Braze on 8 of the 14 factors compared between the two stocks.
About Braze
Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data. It also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company provides Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences; campaigns, which allows customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; marketing pressure management; and reporting and analytics. Further, it offers personalization products, such as liquid templating platform, connected content platform, content blocks, intelligent timing and channel, personalized variant, and AI item recommendations, and catalogs; and action products. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.
About Cloudflare
Cloudflare, Inc. operates as a cloud services provider that delivers a range of 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 IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products. It offers website and application performance solutions, including content delivery, load balancing, DNS, agro smart routing, video stream delivery, web optimization, cache reserve, cloudfare waiting room, and cloudfare data localization suite; SASE platform through cloudfare one that provides a cloud-based network-as-a-service; network services which deliver network connectivity, security, and performance, including magic WAN, magic transit, magic firewall, cloudflare network interconnect, and spectrum. In addition, the company provides zero trust services, such as cloudflare access, cloudflare gateway, remote browser isolation, cloud access security broker, cloud email security, and data loss prevention products that protects, inspects, and provides privilege rules to grant access to data and application. Further, it provides developer-based solutions consisting of cloudflare workers, R2 object storage, workers KV, durable objects, cloudfare pages, cloudfare stream, and cloudfare images; and consumer products comprising of 1.1.1.1, a DNS resolver, WARP, a virtual private network, and cloudfare registrar that secures registration and management of domain names. The company serves customers in the technology, healthcare, financial services, consumer and retail, industrial, and non-profit industries, as well as government. Cloudflare, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.
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