New Relic (NYSE:NEWR) & Carbon Black (NYSE:CBLK) Head to Head Contrast

Sourec: mayfieldrecorder.com

Carbon Black (NASDAQ:CBLK) and New Relic (NYSE:NEWR) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

This table compares Carbon Black and New Relic’s gross revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Carbon Black$209.72 million7.69-$82.06 million($1.40)-15.66
New Relic$479.23 million7.68-$40.89 million($0.31)-203.19

New Relic has higher revenue and earnings than Carbon Black. New Relic is trading at a lower price-to-earnings ratio than Carbon Black, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Carbon Black and New Relic, as provided by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Carbon Black03212.67
New Relic151002.56

Carbon Black presently has a consensus price target of $18.30, indicating a potential downside of 16.54%. New Relic has a consensus price target of $99.08, indicating a potential upside of 57.29%. Given New Relic’s higher possible upside, analysts clearly believe New Relic is more favorable than Carbon Black.

Insider & Institutional Ownership

64.5% of Carbon Black shares are owned by institutional investors. Comparatively, 78.3% of New Relic shares are owned by institutional investors. 21.6% of Carbon Black shares are owned by insiders. Comparatively, 17.4% of New Relic shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Carbon Black has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, New Relic has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Profitability

This table compares Carbon Black and New Relic’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Carbon Black-30.69%-37.82%-17.26%
New Relic-9.93%-8.74%-2.85%

Summary

New Relic beats Carbon Black on 9 of the 15 factors compared between the two stocks.

About Carbon Black

Carbon Black logo

Carbon Black, Inc. provides security solutions in the United States and internationally. Its solutions enable customers to predict, prevent, detect, respond to, and remediate cyber-attacks before they cause a damaging incident or data breach. The company offers CB Predictive Security Cloud, a big data and analytics platform, which provides endpoint data collection, streaming analytics, collective intelligence, and open application program interfaces, as well as a set of security services. It also provides CB Defense, an antivirus, and endpoint detection and response solution; CB ThreatHunter, a threat hunting and incident response solution delivering unfiltered visibility for security operations centers and incident response teams; CB LiveOps, a real-time security operations solution that enables organizations to query various endpoints and remediate issues in real time; CB ThreatSight, a managed service for CB Defense customers designed to monitor, prioritize, and analyze threats; and CB Defense for VMware, an offering to protect applications running inside virtualized data centers. In addition, the company offers CB Response, an on premises or cloud based solution for threat hunting and incident response; and CB Protection, a product for application control to lock down critical infrastructure available on premise. Further, it provides unfiltered endpoint data collection; proprietary data-shaping technology; streaming analytics and collective intelligence; and extensible and open architecture products. The company serves security-focused enterprises, government agencies, and small-to-mid-sized organizations. The company was formerly known as Bit9, Inc. and changed its name to Carbon Black, Inc. in January 2016. Carbon Black, Inc. was founded in 2002 and is headquartered in Waltham, Massachusetts.

About New Relic

New Relic logo

New Relic, Inc., a software-as-a-service company, provides various digital products worldwide. Its cloud-based platform and suite of products include New Relic Platform, which enable organizations to collect, store, and analyze data. The company offers New Relic Application Performance Management that provides visibility into the performance and usage of server-based applications, such as data pertaining to response time, transaction throughput, error rates, top transactions, and user satisfaction; New Relic Mobile, which provides code-level visibility into the performance and health of mobile applications running on the iOS and Android mobile operating systems; and New Relic Browser that monitors the page view experiences of actual end-users for desktop and mobile browser-based applications. It also provides New Relic Synthetics, which simulates usage and reproduces business-critical functionality that enables its users to test their software throughout the entire development life cycle; New Relic Infrastructure that provides a view of the health and configuration changes for an enterprise’s entire host ecosystem across various environments; and New Relic Insights that enables technology and business users to perform real-time analysis. In addition, the company offers New Relic Applied Intelligence platform; New Relic’s alerting platform, a centralized notification system that delivers alerts from across the products that make up the New Relic Platform; and New Relic’s plugins architecture, which offers a plugin architecture, including application programming interfaces and software development kits for customers and partners to embed and extend its solution into their products. The company sells its products through direct sales organizations, online and offline sales, and marketing activities. New Relic, Inc. was founded in 2007 and is headquartered in San Francisco, California.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.