Talend (NASDAQ:TLND) versus New Relic (NASDAQ:NEWR) Financial Contrast

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Talend and New Relic, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Talend 1 1 5 0 2.57
New Relic 1 6 10 0 2.53

Talend presently has a consensus target price of $55.43, suggesting a potential upside of 45.48%. New Relic has a consensus target price of $95.07, suggesting a potential upside of 62.77%. Given New Relic’s higher probable upside, analysts plainly believe New Relic is more favorable than Talend.

Profitability

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

Net Margins Return on Equity Return on Assets
Talend -25.39% -249.51% -24.23%
New Relic -9.93% -8.55% -2.76%

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Talend $204.32 million 5.43 -$40.36 million ($1.22) -31.23
New Relic $479.23 million 7.12 -$40.89 million ($0.31) -188.42

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

Risk & Volatility

Talend has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500. Comparatively, New Relic has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Institutional & Insider Ownership

85.6% of Talend shares are held by institutional investors. Comparatively, 80.1% of New Relic shares are held by institutional investors. 4.3% of Talend shares are held by insiders. Comparatively, 17.4% of New Relic shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

New Relic beats Talend on 10 of the 14 factors compared between the two stocks.

About Talend

Talend S.A. provides software platform to address IT integration needs in various industries in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It designs and develops Talend Data Fabric, a software platform that integrates data and applications in real time across big data and cloud environments, as well as traditional systems, which allows organizations to develop a unified view of their business and customers. The company's Talend Data Fabric platform includes data integration, big data integration, application and cloud integration, data catalogue, and API design and testing, as well as master data management, and self-service data preparation products; and Stitch Data Loader, is a cloud-based data ingestion engine. It also provides technical support; and consulting and training services. The company sells its products directly to customers through sales force, as well as indirectly through channel partners. Talend S.A. was founded in 2005 and is headquartered in Redwood City, California.

About New Relic

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.

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