Fastly (NYSE:FSLY – Get Free Report) and Aurora Mobile (NASDAQ:JG – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.
Volatility & Risk
Fastly has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Aurora Mobile has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.
Earnings & Valuation
This table compares Fastly and Aurora Mobile”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fastly | $543.68 million | 2.18 | -$158.06 million | ($1.03) | -7.79 |
| Aurora Mobile | $43.31 million | 1.13 | -$960,000.00 | ($0.16) | -50.85 |
Aurora Mobile has lower revenue, but higher earnings than Fastly. Aurora Mobile is trading at a lower price-to-earnings ratio than Fastly, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for Fastly and Aurora Mobile, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fastly | 1 | 8 | 1 | 0 | 2.00 |
| Aurora Mobile | 1 | 0 | 0 | 0 | 1.00 |
Fastly currently has a consensus target price of $8.69, indicating a potential upside of 8.26%. Given Fastly’s stronger consensus rating and higher possible upside, analysts plainly believe Fastly is more favorable than Aurora Mobile.
Profitability
This table compares Fastly and Aurora Mobile’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fastly | -25.85% | -11.98% | -7.87% |
| Aurora Mobile | -1.78% | -6.33% | -1.68% |
Institutional and Insider Ownership
79.7% of Fastly shares are held by institutional investors. Comparatively, 85.5% of Aurora Mobile shares are held by institutional investors. 6.7% of Fastly shares are held by company insiders. Comparatively, 31.2% of Aurora Mobile shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Aurora Mobile beats Fastly on 8 of the 14 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 Aurora Mobile
Aurora Mobile Limited, through its subsidiaries, provides a range of developer services in China. The company provides push notification, instant messaging, analytics, sharing and short message service, one-click verification, and other services. The company offers real-time market intelligence solutions, such as product iApp, which provides analysis and statistical results on the usage and trends of mobile apps to investment funds and corporations. It also provides financial risk management solutions to assist financial institutions, licensed lenders, and credit card companies in making informed lending and credit decisions; and location-based intelligence services. In addition, the company offers application programming interfaces that create connectivity and automate the process of message exchange between the mobile apps and its backend network; an interactive web-based service dashboard that allows app developers to utilize and monitor its services through controls on an ongoing basis; and value added services, such as Advertisement SAAS, a data management platform service, which provides tagged and de-identified population data package; JG Alliance, an integrated marketing campaign services to advertising customers; and AD Mediation Platform to help mobile app developers access other mainstream advertising platforms. It primarily serves mobile app developers in a range of industries, such as media, entertainment, gaming, financial services, tourism, ecommerce, education, and healthcare. Aurora Mobile Limited was founded in 2011 and is headquartered in Shenzhen, the People's Republic of China.
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