Financial Contrast: Fusemachines (NASDAQ:FUSE) & Fastly (NASDAQ:FSLY)

Fusemachines (NASDAQ:FUSE) and Fastly (NASDAQ:FSLY) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Institutional and Insider Ownership

46.8% of Fusemachines shares are held by institutional investors. Comparatively, 79.7% of Fastly shares are held by institutional investors. 31.8% of Fusemachines shares are held by insiders. Comparatively, 4.2% of Fastly shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Fusemachines and Fastly”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fusemachines	$7.71 million	2.27	-$930,000.00	($0.13)	-4.65
Fastly	$624.02 million	5.80	-$121.68 million	($0.53)	-42.85

Fusemachines has higher earnings, but lower revenue than Fastly. Fastly is trading at a lower price-to-earnings ratio than Fusemachines, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Fusemachines and Fastly, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fusemachines	1	0	0	0	1.00
Fastly	1	6	5	1	2.46

Fastly has a consensus target price of $25.33, suggesting a potential upside of 11.55%. Given Fastly’s stronger consensus rating and higher possible upside, analysts plainly believe Fastly is more favorable than Fusemachines.

Volatility & Risk

Fusemachines has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Fastly has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fusemachines	N/A	N/A	N/A
Fastly	-11.80%	-6.31%	-4.04%

Summary

Fusemachines beats Fastly on 8 of the 15 factors compared between the two stocks.

About Fusemachines

Fusemachines Inc. develops and delivers artificial intelligence (AI) as a service and machine learning software solutions. The company offers Fuse Anna which is an AI assistant for follow ups through daily reminders; and Fuse Prospector which is an artificial intelligence sales platform. Further, the company offers managed outbound services and AI as a service for big data processing, data management, and cloud analytics. Additionally, it offers Fusemachines AI fellowship program, which provides selected scholars from underserved communities with mentorship and resources to develop advanced skills in artificial intelligence and machine learning; as well as Fusemachines Academy, a learning platform to build and enhance skills. The company serves governments, financial institutions, and e-commerce companies. The company is based in New York, New York with an additional offices in Kathmandu, Nepal; Toronto, Canada; Kochi, India; Santo Domingo, Cuba.

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.