Backblaze (NASDAQ:BLZE – Get Free Report) and Cognizant Technology Solutions (NASDAQ:CTSH – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.
Risk & Volatility
Backblaze has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
Insider and Institutional Ownership
54.0% of Backblaze shares are owned by institutional investors. Comparatively, 92.4% of Cognizant Technology Solutions shares are owned by institutional investors. 4.2% of Backblaze shares are owned by company insiders. Comparatively, 0.4% of Cognizant Technology Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Backblaze | $145.84 million | 6.02 | -$25.61 million | ($0.34) | -41.71 |
| Cognizant Technology Solutions | $21.11 billion | 1.30 | $2.23 billion | $4.65 | 13.09 |
Cognizant Technology Solutions has higher revenue and earnings than Backblaze. Backblaze is trading at a lower price-to-earnings ratio than Cognizant Technology Solutions, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Backblaze and Cognizant Technology Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Backblaze | -13.07% | -16.73% | -7.10% |
| Cognizant Technology Solutions | 10.26% | 17.70% | 12.81% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Backblaze and Cognizant Technology Solutions, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Backblaze | 1 | 1 | 8 | 0 | 2.70 |
| Cognizant Technology Solutions | 1 | 13 | 10 | 0 | 2.38 |
Backblaze presently has a consensus target price of $19.71, suggesting a potential upside of 39.03%. Cognizant Technology Solutions has a consensus target price of $64.43, suggesting a potential upside of 5.84%. Given Backblaze’s stronger consensus rating and higher possible upside, analysts plainly believe Backblaze is more favorable than Cognizant Technology Solutions.
Summary
Cognizant Technology Solutions beats Backblaze on 9 of the 14 factors compared between the two stocks.
About Backblaze
Backblaze, Inc., a storage cloud platform, provides businesses and consumers cloud services to store, use, and protect data in the United States and internationally. The company offers cloud services through a web-scale software infrastructure built on commodity hardware. It also provides Backblaze B2 Cloud Storage, which enables customers to store data, developers to build applications, and partners to expand their use cases. This service is offered as a consumption-based Infrastructure-as-a-Service (IaaS) and serves use cases, such as public, hybrid, and multi-cloud data storage; application development and DevOps; content delivery and edge computing; security and ransomware protection; media management; backup, archive, and tape replacement; repository for analytics, artificial intelligence and machine learning; and Internet of Things. In addition, the company offers Backblaze Computer Backup that automatically backs up data from laptops and desktops for businesses and individuals, which provides a subscription-based Software-as-a-Service and serves use cases, including computer backup, ransomware protection, theft and loss protection, and remote access. It serves the public cloud IaaS storage and Data-Protection-as-a-Service markets. The company was incorporated in 2007 and is headquartered in San Mateo, California.
About Cognizant Technology Solutions
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology. The company provides customer experience, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. It offers solution to manufacturers, automakers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, business process improvement, technology modernization, and the creation of unified and compelling user experience services to communications, media and entertainment, education, and information services and technology companies. The company was incorporated in 1988 and is headquartered in Teaneck, New Jersey.
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