Contrasting Couchbase (NASDAQ:BASE) & BlackLine (NASDAQ:BL)

BlackLine (NASDAQ:BL) and Couchbase (NASDAQ:BASE) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Valuation & Earnings

This table compares BlackLine and Couchbase”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlackLine	$653.34 million	4.72	$165.81 million	$1.45	33.88
Couchbase	$209.47 million	4.09	-$80.18 million	($1.46)	-11.06

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

Analyst Recommendations

This is a summary of current ratings and price targets for BlackLine and Couchbase, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackLine	2	3	7	0	2.42
Couchbase	1	2	13	0	2.75

BlackLine presently has a consensus price target of $65.64, indicating a potential upside of 33.60%. Couchbase has a consensus price target of $22.19, indicating a potential upside of 37.38%. Given Couchbase’s stronger consensus rating and higher possible upside, analysts clearly believe Couchbase is more favorable than BlackLine.

Institutional & Insider Ownership

95.1% of BlackLine shares are owned by institutional investors. Comparatively, 96.1% of Couchbase shares are owned by institutional investors. 9.9% of BlackLine shares are owned by company insiders. Comparatively, 16.1% of Couchbase shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares BlackLine and Couchbase’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlackLine	24.67%	21.63%	4.10%
Couchbase	-39.31%	-57.22%	-30.94%

Risk and Volatility

BlackLine has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Couchbase has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Summary

BlackLine beats Couchbase on 9 of the 14 factors compared between the two stocks.

About BlackLine

BlackLine, Inc. operates a cloud-based software platform which is designed to transform accounting and finance operations for organizations of all types and sizes. Its scalable platform supports critical accounting processes such as the financial close, account reconciliations, intercompany accounting, and controls assurance. The company was founded by Therese Tucker in May 2001 and is headquartered in Woodland Hills, CA.

About Couchbase

Couchbase, Inc. provides cloud database platform for enterprise applications in the United States and internationally. Its database works in multiple configurations, ranging from cloud to multi- or hybrid-cloud to on-premise environments to the edge. The company offers Couchbase Capella, an automated and secure Database-as-a-Service that simplifies database management by deploying, managing, and operating Couchbase Server across cloud environments; and Couchbase Server, a multi-service NoSQL database, which provides SQL-compatible query language and SQL++ that allows for a various array of data manipulation functions. It also provides Couchbase Mobile, an embedded NoSQL database for mobile and edge devices that enables an always-on experience with high data availability, even without internet connectivity, as well as synchronization gateway that allows for secure data sync between mobile devices and the backend data store. The company sells its platform through direct sales force and an ecosystem of partners. It serves governments and organizations, as well as enterprises in various industries, including retail and e-commerce, travel and hospitality, financial services and insurance, software and technology, gaming, media and entertainment, and industrials. The company was formerly known as Membase, Inc. and changed its name to Couchbase, Inc. in February 2011. Couchbase, Inc. was incorporated in 2008 and is headquartered in Santa Clara, California.