Critical Survey: Cloudflare (NYSE:NET) and Aware (NYSE:AWRE)

Cloudflare (NYSE:NET) and Aware (NASDAQ:AWRE) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Insider & Institutional Ownership

17.9% of Cloudflare shares are held by institutional investors. Comparatively, 22.3% of Aware shares are held by institutional investors. 18.6% of Aware shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Cloudflare and Aware, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cloudflare 0 3 9 0 2.75
Aware 0 0 0 0 N/A

Cloudflare presently has a consensus target price of $20.88, suggesting a potential upside of 18.20%. Given Cloudflare’s higher probable upside, equities research analysts clearly believe Cloudflare is more favorable than Aware.

Valuation & Earnings

This table compares Cloudflare and Aware’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cloudflare $192.67 million 27.52 -$87.16 million N/A N/A
Aware $16.13 million 4.70 $1.23 million N/A N/A

Aware has lower revenue, but higher earnings than Cloudflare.

Profitability

This table compares Cloudflare and Aware’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
Aware -1.61% -0.36% -0.34%

Summary

Cloudflare beats Aware on 7 of the 10 factors compared between the two stocks.

Cloudflare Company Profile

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.

Aware Company Profile

Aware, Inc. provides software and services for the biometrics industry in the United States, the United Kingdom, Brazil, and internationally. It offers biometrics software products, including biometric search and matching software development kits (SDKs), biometric enrollment SDKs and application program interfaces (APIs), identity text analytics SDK – Inquire, biometric services platform – BioSP, and cluster-based matching platform – Astra; and integrated solutions comprising Knomi, AwareABIS, WebEnroll, and Indigo, as well as biometric applications that enable various functions in biometrics systems, such as enrollment, analysis, and processing of biometric images and data on workstations or mobile devices; integration of peripheral biometric capture devices; centralized workflow, transaction processing, and subsystem integration; matching of biometric samples against biometric databases to authenticate or verify identities; and analysis and processing of text-based identity data. The company also provides imaging products for medical applications, such as JPEG2000 product to compress, store, and display images, as well as software maintenance services. In addition, it offers software engineering services comprising project planning and management; system design; software design, development, customization, configuration, and testing; and software integration and installation. The company's software products are used in government and commercial biometrics systems to identify or authenticate people. It sells its biometrics software products and services through systems integrators, OEMs, and directly to end user customers. Aware, Inc. was founded in 1986 and is headquartered in Bedford, Massachusetts.

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