Fastly vs Cloudflare Which Is More Lucrative?

Fastly and Cloudflare are two leading companies in the content delivery network (CDN) industry, offering services to accelerate internet traffic and enhance website performance. Both companies have seen significant growth in their stock values in recent years, attracting investors looking to capitalize on the increasing demand for fast and secure online experiences. However, Fastly and Cloudflare have different approaches and technologies, making them unique investment opportunities with their own set of risks and rewards. In this article, we will compare the stocks of Fastly and Cloudflare to help you decide which one may be the better investment for your portfolio.

Fastly or Cloudflare?

When comparing Fastly and Cloudflare, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Fastly and Cloudflare.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Fastly has a dividend yield of -%, while Cloudflare has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Fastly reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Cloudflare reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Fastly P/E ratio at -9.82 and Cloudflare's P/E ratio at -414.55. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Fastly P/B ratio is 1.51 while Cloudflare's P/B ratio is 39.97.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Fastly has seen a 5-year revenue growth of 1.15%, while Cloudflare's is 3.79%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fastly's ROE at -15.15% and Cloudflare's ROE at -10.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $10.38 for Fastly and $112.62 for Cloudflare. Over the past year, Fastly's prices ranged from $5.52 to $25.87, with a yearly change of 368.66%. Cloudflare's prices fluctuated between $66.24 and $116.00, with a yearly change of 75.12%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.