Reviewing Global-E Online (NASDAQ:GLBE) & Cloudflare (NYSE:NET)

Global-E Online (NASDAQ:GLBE) and Cloudflare (NYSE:NET) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for Global-E Online and Cloudflare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global-E Online	0	1	9	0	2.90
Cloudflare	4	10	9	0	2.22

Global-E Online currently has a consensus price target of $43.00, indicating a potential upside of 26.66%. Cloudflare has a consensus price target of $87.08, indicating a potential downside of 4.35%. Given Global-E Online’s stronger consensus rating and higher probable upside, research analysts plainly believe Global-E Online is more favorable than Cloudflare.

Insider and Institutional Ownership

94.6% of Global-E Online shares are held by institutional investors. Comparatively, 82.7% of Cloudflare shares are held by institutional investors. 11.6% of Global-E Online shares are held by company insiders. Comparatively, 14.8% of Cloudflare shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Global-E Online and Cloudflare’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global-E Online	$569.95 million	9.78	-$133.80 million	($0.81)	-41.91
Cloudflare	$1.30 billion	23.71	-$183.95 million	($0.55)	-165.52

Global-E Online has higher earnings, but lower revenue than Cloudflare. Cloudflare is trading at a lower price-to-earnings ratio than Global-E Online, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Global-E Online and Cloudflare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global-E Online	-23.48%	-19.33%	-15.57%
Cloudflare	-14.19%	-15.92%	-4.16%

Volatility and Risk

Global-E Online has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Cloudflare has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Summary

Cloudflare beats Global-E Online on 8 of the 13 factors compared between the two stocks.

About Global-E Online

Global-E Online Ltd., together with its subsidiaries, provides a platform to enable and accelerate direct-to-consumer cross-border e-commerce in Israel, the United Kingdom, the United States, and internationally. Its platform enables international shoppers to buy online and merchants to sell from, and to, worldwide. The company was incorporated in 2013 and is headquartered in Petah Tikva, Israel.

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.