Cloudflare (NYSE:NET – Get Free Report) and CoreWeave (NASDAQ:CRWV – Get Free Report) are both large-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.
Insider & Institutional Ownership
82.7% of Cloudflare shares are owned by institutional investors. 10.7% of Cloudflare shares are owned by insiders. Comparatively, 24.2% of CoreWeave shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Cloudflare and CoreWeave”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cloudflare | $2.17 billion | 52.11 | -$102.27 million | ($0.68) | -470.02 |
| CoreWeave | $5.13 billion | 5.06 | -$1.17 billion | ($3.65) | -15.51 |
Cloudflare has higher earnings, but lower revenue 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.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Cloudflare and CoreWeave, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cloudflare | 3 | 7 | 26 | 0 | 2.64 |
| CoreWeave | 4 | 8 | 26 | 0 | 2.58 |
Cloudflare currently has a consensus price target of $338.48, suggesting a potential upside of 5.90%. CoreWeave has a consensus price target of $116.66, suggesting a potential upside of 106.11%. Given CoreWeave’s higher possible upside, analysts clearly believe CoreWeave is more favorable than Cloudflare.
Volatility & Risk
Cloudflare has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, CoreWeave has a beta of 7.71, suggesting that its share price is 671% more volatile than the S&P 500.
Profitability
This table compares Cloudflare and CoreWeave’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cloudflare | -8.75% | -6.05% | -1.39% |
| CoreWeave | -25.56% | -59.42% | -4.28% |
Summary
Cloudflare beats CoreWeave on 8 of the 13 factors compared between the two stocks.
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.
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.
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