Analyzing Backblaze (NASDAQ:BLZE) & Grab (NASDAQ:GRAB)

Backblaze (NASDAQ:BLZE) and Grab (NASDAQ:GRAB) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Volatility and Risk

Backblaze has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Grab has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Institutional and Insider Ownership

54.0% of Backblaze shares are held by institutional investors. Comparatively, 55.5% of Grab shares are held by institutional investors. 4.2% of Backblaze shares are held by insiders. Comparatively, 3.6% of Grab 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.

Profitability

This table compares Backblaze and Grab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Backblaze	-14.97%	-20.54%	-8.90%
Grab	10.67%	5.79%	3.28%

Analyst Recommendations

This is a breakdown of recent ratings for Backblaze and Grab, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Backblaze	1	1	8	0	2.70
Grab	0	2	8	1	2.91

Backblaze currently has a consensus target price of $13.21, indicating a potential upside of 7.35%. Grab has a consensus target price of $6.01, indicating a potential upside of 79.27%. Given Grab’s stronger consensus rating and higher possible upside, analysts clearly believe Grab is more favorable than Backblaze.

Earnings and Valuation

This table compares Backblaze and Grab”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Backblaze	$145.84 million	5.07	-$25.61 million	($0.39)	-31.56
Grab	$3.37 billion	4.07	$268.00 million	$0.01	335.00

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

Summary

Grab beats Backblaze on 11 of the 14 factors compared between the two stocks.

About Backblaze

Backblaze, Inc., a storage cloud platform, provides businesses and consumers cloud services to store, use, and protect data in the United States and internationally. The company offers cloud services through a web-scale software infrastructure built on commodity hardware. It also provides Backblaze B2 Cloud Storage, which enables customers to store data, developers to build applications, and partners to expand their use cases. This service is offered as a consumption-based Infrastructure-as-a-Service (IaaS) and serves use cases, such as public, hybrid, and multi-cloud data storage; application development and DevOps; content delivery and edge computing; security and ransomware protection; media management; backup, archive, and tape replacement; repository for analytics, artificial intelligence and machine learning; and Internet of Things. In addition, the company offers Backblaze Computer Backup that automatically backs up data from laptops and desktops for businesses and individuals, which provides a subscription-based Software-as-a-Service and serves use cases, including computer backup, ransomware protection, theft and loss protection, and remote access. It serves the public cloud IaaS storage and Data-Protection-as-a-Service markets. The company was incorporated in 2007 and is headquartered in San Mateo, California.

About Grab

Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.