Fastly (NYSE:FSLY) and Bridgeline Digital (NASDAQ:BLIN) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
Insider & Institutional Ownership
14.1% of Fastly shares are owned by institutional investors. Comparatively, 4.9% of Bridgeline Digital shares are owned by institutional investors. 10.2% of Bridgeline Digital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Fastly and Bridgeline Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fastly | N/A | N/A | N/A |
| Bridgeline Digital | -110.39% | -698.77% | -47.05% |
Earnings & Valuation
This table compares Fastly and Bridgeline Digital’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fastly | N/A | N/A | N/A | N/A | N/A |
| Bridgeline Digital | $13.57 million | 0.44 | -$7.21 million | N/A | N/A |
Fastly has higher earnings, but lower revenue than Bridgeline Digital.
Analyst Recommendations
This is a breakdown of recent recommendations for Fastly and Bridgeline Digital, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fastly | 0 | 2 | 10 | 0 | 2.83 |
| Bridgeline Digital | 0 | 0 | 0 | 0 | N/A |
Fastly currently has a consensus target price of $25.03, indicating a potential downside of 10.50%. Given Fastly’s higher possible upside, equities research analysts plainly believe Fastly is more favorable than Bridgeline Digital.
Summary
Fastly beats Bridgeline Digital on 6 of the 8 factors compared between the two stocks.
About Bridgeline Digital
Bridgeline Digital, Inc. operates as a digital engagement company in the United States. The company’s Bridgeline’s Unbound platform enables companies and developers to create Websites, Web applications, and online stores. It offers Bridgeline Unbound Experience Manager, a marketing automation engine and content management system; Bridgeline Unbound Content Manager that enables non-technical users to create, edit, and publish content via a browser-based interface; and Bridgeline Unbound Commerce, an online B2B and B2C commerce solution that allows users to manage domestic and international commerce initiatives. The company also provides Bridgeline Unbound Marketing, an online marketing management solution that helps marketers drive to their sites through personalized and targeted marketing automation flows; and Bridgeline Unbound Insights to manage, measure, and optimize Web properties by recording detailed events and mining data for statistical analysis. In addition, it offers Bridgeline Unbound Social, a social media management solution that empowers customers to set up customized watch lists; and Bridgeline Unbound Franchises, a Web content management and e-commerce platform to multi-unit organizations and franchises. Further, the company provides digital strategy, Web design and development, usability engineering, information architecture, and search engine optimization services; application monitoring, emergency response, version control, load balancing, managed firewall security, and virus protection services; and shared, dedicated, and Software as a Service hosting services. It serves vertical markets, such as financial services, retail brand names, health services and life sciences, technology, credit unions and regional banks, and associations and foundations through its direct sales force. The company was formerly known as Bridgeline Software, Inc. Bridgeline Digital, Inc. was founded in 2000 and is based in Burlington, Massachusetts.
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