Head-To-Head Analysis: Cloudflare (NYSE:NET) versus National Instruments (NASDAQ:NATI)

National Instruments (NASDAQ:NATIGet Rating) and Cloudflare (NYSE:NETGet Rating) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Instruments $1.47 billion 4.17 $89.32 million $1.05 44.73
Cloudflare $656.43 million 21.99 -$260.31 million ($0.70) -62.76

National Instruments has higher revenue and earnings than Cloudflare. Cloudflare is trading at a lower price-to-earnings ratio than National Instruments, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

National Instruments has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Cloudflare has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
National Instruments 8.59% 16.91% 9.28%
Cloudflare -25.16% -27.82% -7.18%

Analyst Recommendations

This is a summary of current ratings and recommmendations for National Instruments and Cloudflare, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Instruments 0 2 5 0 2.71
Cloudflare 0 11 9 0 2.45

National Instruments currently has a consensus target price of $47.86, suggesting a potential upside of 1.89%. Cloudflare has a consensus target price of $78.58, suggesting a potential upside of 78.88%. Given Cloudflare’s higher possible upside, analysts clearly believe Cloudflare is more favorable than National Instruments.

Insider and Institutional Ownership

90.9% of National Instruments shares are held by institutional investors. Comparatively, 70.0% of Cloudflare shares are held by institutional investors. 0.6% of National Instruments shares are held by insiders. Comparatively, 16.0% of Cloudflare shares are held 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.

Summary

National Instruments beats Cloudflare on 10 of the 14 factors compared between the two stocks.

About National Instruments

(Get Rating)

National Instruments Corporation provides a software-centric platform and systems to engineers and scientists worldwide. Its programming environments software includes NI LabVIEW, a graphical software platform to visualize hardware configuration, measurement data, and debugging of application; NI LabWindows/CVI, an ANSI C integrated development environment and engineering toolbox; and NI Measurement Studio, a suite of .NET tools for building engineering applications in Microsoft Visual Studio. The company's application software comprises NI TestStand that is used for automated test and measurement applications in manufacturing environment; NI VeriStand, a software environment for configuring real-time testing applications; Flexlogger for sensor configuration and data logging of mixed signals; and NI InsightCM Enterprise, a software for monitoring ancillary rotating equipment. Its operations management and analytic enterprise software include NI DIAdem, which is configuration-based technical data management, analysis, and report generation tools to mine and analyze engineering and measurement data; NI SystemLink, a systems management and data collection software that enables the mass coordination of connected devices, software deployments, and data communications throughout a distributed system; and NI Optimal Plus. The company also offers PXI hardware form factor; and NI semiconductor test systems, as well as software and hardware maintenance, and training and certification services. It serves semiconductor, transportation, aerospace, and defense industries; and government agencies. National Instruments Corporation has strategic agreements with Konrad Technologies, Inc. to develop test systems and solutions for autonomous driving software and hardware validation; and Foretellix Ltd. to enhance the safety of advanced driver-assistance systems and autonomous vehicles. The company was incorporated in 1976 and is headquartered in Austin, Texas.

About Cloudflare

(Get Rating)

CloudFlare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide. The company offers 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. Its security products comprise cloud firewall, bot management, distributed denial of service, IoT, SSL/TLS, secure origin connection, and rate limiting products. The company also offers performance solutions, which include content delivery and intelligent routing, as well as content, mobile, and image optimization solutions. In addition, it provides reliability solutions comprising load balancing, anycast network, virtual backbone, DNS, DNS resolver, online, and virtual waiting room solutions. Further, the company offers Cloudflare internal infrastructure solutions, including on-ramps, which connect users, devices, or locations to its network; and filters, which are the products that protect, inspect, and privilege data. Additionally, it provides developer-based solutions, such as serverless computing/programmable network, website development, domain registration, Cloudflare apps, analytics, and data localization management; Consumer DNS Resolver, a consumer app to browse the Internet; and Consumer VPN for consumers to secure and accelerate traffic on mobile devices. The company serves customers in the technology, healthcare, financial services, consumer and retail, 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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