Critical Comparison: Aware (NASDAQ:AWRE) and Fastly (NASDAQ:FSLY)

Aware (NASDAQ:AWRE) and Fastly (NYSE:FSLY) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Earnings & Valuation

This table compares Aware and Fastly’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aware $12.20 million 4.72 -$8.34 million N/A N/A
Fastly $200.46 million 38.18 -$51.55 million ($0.70) -120.96

Aware has higher earnings, but lower revenue than Fastly.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Aware and Fastly, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aware 0 0 0 0 N/A
Fastly 3 5 5 0 2.15

Fastly has a consensus target price of $75.58, indicating a potential downside of 10.73%. Given Fastly’s higher probable upside, analysts clearly believe Fastly is more favorable than Aware.

Insider and Institutional Ownership

30.5% of Aware shares are held by institutional investors. Comparatively, 61.2% of Fastly shares are held by institutional investors. 18.6% of Aware shares are held by insiders. Comparatively, 24.3% of Fastly shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Aware and Fastly’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aware -108.85% -21.94% -20.22%
Fastly -21.39% -16.02% -13.34%

Risk & Volatility

Aware has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500. Comparatively, Fastly has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Summary

Fastly beats Aware on 10 of the 12 factors compared between the two stocks.

About Aware

Aware, Inc. provides software and services for the biometrics industry in the United States, the United Kingdom, Brazil, and internationally. It offers biometrics software products, including biometric search and matching software development kits (SDKs), biometric enrollment SDKs and application program interfaces (APIs), identity text analytics SDK – Inquire, biometric services platform – BioSP, and cluster-based matching platform – Astra; and integrated solutions comprising Knomi, AwareABIS, WebEnroll, and Indigo, as well as biometric applications that enable various functions in biometrics systems, such as enrollment, analysis, and processing of biometric images and data on workstations or mobile devices; integration of peripheral biometric capture devices; centralized workflow, transaction processing, and subsystem integration; matching of biometric samples against biometric databases to authenticate or verify identities; and analysis and processing of text-based identity data. The company also provides imaging products for medical applications, such as JPEG2000 product to compress, store, and display images, as well as software maintenance services. In addition, it offers software engineering services comprising project planning and management; system design; software design, development, customization, configuration, and testing; and software integration and installation. The company's software products are used in government and commercial biometrics systems to identify or authenticate people. It sells its biometrics software products and services through systems integrators, OEMs, and directly to end user customers. Aware, Inc. was founded in 1986 and is headquartered in Bedford, Massachusetts.

About Fastly

Fastly, Inc. operates an edge cloud platform for processing, serving, and securing its customer's applications. The edge cloud is a category of Infrastructure as a Service that enables developers to build, secure, and deliver digital experiences at the edge of the Internet. It is a programmable platform designed for Web and application delivery. As of December 31, 2019, the company's edge network spans 68 points-of-presence worldwide. It serves customers operating in digital publishing, media and entertainment, technology, online retail, travel and hospitality, and financial technology services industries. The company was formerly known as SkyCache, Inc. and changed its name to Fastly, Inc. in May 2012. Fastly, Inc. was founded in 2011 and is headquartered in San Francisco, California.

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