Reviewing Cloudflare (NYSE:NET) & authID (NASDAQ:AUID)

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

Analyst Recommendations

This is a summary of recent recommendations for authID and Cloudflare, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
authID	0	0	0	0	0.00
Cloudflare	2	10	18	1	2.58

Cloudflare has a consensus target price of $234.78, suggesting a potential upside of 19.96%. Given Cloudflare’s stronger consensus rating and higher probable upside, analysts plainly believe Cloudflare is more favorable than authID.

Risk and Volatility

authID has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Cloudflare has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500.

Insider and Institutional Ownership

8.8% of authID shares are held by institutional investors. Comparatively, 82.7% of Cloudflare shares are held by institutional investors. 7.2% of authID shares are held by company insiders. Comparatively, 10.9% of Cloudflare shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares authID and Cloudflare”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
authID	$1.83 million	6.60	-$14.28 million	($1.60)	-0.56
Cloudflare	$1.67 billion	41.06	-$78.80 million	($0.30)	-652.40

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
authID	-728.89%	-180.17%	-145.07%
Cloudflare	-5.12%	-6.54%	-1.80%

Summary

Cloudflare beats authID on 13 of the 15 factors compared between the two stocks.

About authID

authID Inc. provides secure, biometric, identity verification, and strong passwordless and biometric authentication for consumer and workforce applications worldwide. The company offers solutions through its Verified platform to enable their users to easily verify and authenticate their identity through a mobile device or desktop. It provides Biometric Identity Verification, which establishes the trusted identity of users based on a variety of ground truth sources, including chip-based electronic machine-readable travel documents, national IDs, and driver's licenses; Human Factor Authentication that delivers trusted FIDO2 strong authentication for device-based passwordless login and transaction authentication that is tied to a trusted identity; Cloud-Based Biometric Multi-Factor Authentication, which provides any bank, enterprise, or government department a secure and convenient application for identity verification and transaction consent as part of any type of electronic transaction; and Identity – Portal that enables enterprises to get started with its identity products without any integration. The company also offers SEARCH, a biometric matching software for desktop fingerprint capture and image processing. The company was formerly known as Ipsidy Inc. and changed its name to authID Inc. authID Inc. was founded in 2009 and is headquartered in Denver, Colorado.

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.