Comparing Fastly (NYSE:FSLY) & mCloud Technologies (OTCMKTS:MCLDF)

Fastly (NYSE:FSLY) and mCloud Technologies (OTCMKTS:MCLDF) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for Fastly and mCloud Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fastly	1	6	0	1	2.13
mCloud Technologies	0	0	0	0	N/A

Fastly presently has a consensus target price of $7.81, indicating a potential upside of 28.60%.

Risk and Volatility

Fastly has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, mCloud Technologies has a beta of 89.29, indicating that its share price is 8,829% more volatile than the S&P 500.

Profitability

This table compares Fastly and mCloud Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fastly	-25.26%	-15.82%	-9.82%
mCloud Technologies	N/A	N/A	N/A

Insider and Institutional Ownership

79.7% of Fastly shares are held by institutional investors. 6.7% of Fastly shares are held by insiders. Comparatively, 3.6% of mCloud Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Fastly and mCloud Technologies’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fastly	$531.48 million	1.56	-$133.09 million	($1.00)	-6.08
mCloud Technologies	$20.42 million	0.00	-$35.37 million	N/A	N/A

mCloud Technologies has lower revenue, but higher earnings than Fastly.

Summary

mCloud Technologies beats Fastly on 5 of the 9 factors compared between the two stocks.

About Fastly

Fastly, Inc. operates an edge cloud platform for processing, serving, and securing its customer's applications in the United States, the Asia Pacific, Europe, and internationally. 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. The company offers network services to speed up and optimize the delivery of web and application traffic; device detection and geolocation; content delivery network, such as dynamic site acceleration, origin shield, instant purge, surrogate keys, programmatic control, content compression, reliability features, fanout, domainr, privacy, and modern protocols and performance services; and video/ streaming solutions and services, including live streaming, video on demand, and media shield. It also provides security solutions, such as DDoS protection, next-gen WAF, bot management, API and ATO protection, advanced rate limiting, and compliance services; load balancing; image optimization; transport layer security (TLS), platform TLS, and certainly; and origin connect. It serves customers operating in digital publishing, media and entertainment, technology, online education, travel and hospitality, and financial services industries. The company was formerly known as SkyCache, Inc. and changed its name to Fastly, Inc. in May 2012. Fastly, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.

About mCloud Technologies

mCloud Technologies Corp. provides asset management platform solutions combining IoT, artificial intelligence (AI), and cloud in North America, the Asia-Pacific, Europe, the Middle East, Africa, Australia, and China. Its AI-powered AssetCare platform offers asset management solutions, such as Connected Buildings, an AI and analytics solution to automate and remotely manage commercial buildings; Connected Workers, a cloud software to assist workers in the field to stay connected to experts remotely, facilitate repairs, and provide workers with an AI-powered digital assistant; Connected Energy for the inspection of wind turbine blades using AI-powered computer vision and the deployment of analytics to maximize wind farm energy production yield and availability; Connected Industry, to process assets and control endpoint monitoring, equipment health, and asset inventory management, as well as for the management of change across distributed teams; and Connected Health, which includes remote health monitoring and connectivity to caregivers using mobile apps and wireless sensors. The company was formerly known as Universal mCloud Corp. and changed its name to mCloud Technologies Corp. in October 2019. mCloud Technologies Corp. was founded in 2017 and is based in Vancouver, Canada.