Analysis of environmental solutions DIRTT (NASDAQ:DRTT) and Cloudflare (NYSE:NET)


DIRTT Environmental Solutions (NASDAQ: DRTT – Get Rating) and Cloudflare (NYSE: NET – Get Rating) are both construction companies, but which is the best investment? We’ll compare the two companies based on their risk strength, analyst recommendations, dividends, institutional ownership, earnings, valuation, and profitability.

Profitability

This table compares the net margins, return on equity, and return on assets of DIRTT Environmental Solutions and Cloudflare.

Net margins Return on equity return on assets
DIRTT environmental solutions -41.05% -87.63% -33.22%
Cloudy -35.83% -17.74% -6.23%

Volatility and risk

DIRTT Environmental Solutions has a beta of 2.35, indicating its stock price is 135% more volatile than the S&P 500. In comparison, Cloudflare has a beta of 1.06, indicating its stock price is 6% more volatile than the S&P 500.

Benefits and evaluation

This table compares the revenue, earnings per share, and valuation of DIRTT Environmental Solutions and Cloudflare.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
DIRTT environmental solutions $147.59 million 0.57 -$53.67 million ($0.75) -1.30
Cloudy $656.43 million 20.48 -$260.31 million ($0.83) -49.65

DIRTT Environmental Solutions has higher revenue, but lower revenue than Cloudflare. Cloudflare trades at a lower price-to-earnings ratio than DIRTT Environmental Solutions, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

88.9% of DIRTT Environmental Solutions shares are held by institutional investors. By comparison, 70.0% of Cloudflare’s shares are held by institutional investors. 6.7% of the shares of DIRTT Environmental Solutions are held by insiders of the company. By comparison, 20.7% of Cloudflare’s stock is held by company insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of the current recommendations for DIRTT Environmental Solutions and Cloudflare, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
DIRTT environmental solutions 0 2 2 0 2.50
Cloudy 1 11 11 0 2.43

DIRTT Environmental Solutions currently has a consensus price target of $2.59, suggesting a potential upside of 165.93%. Cloudflare has a consensus price target of $130.36, suggesting a potential upside of 216.33%. Given Cloudflare’s likely higher upside, analysts clearly think Cloudflare is more favorable than DIRTT Environmental Solutions.

Summary

Cloudflare beats DIRTT Environmental Solutions on 8 out of 14 factors compared between the two stocks.

About DIRTT Environmental Solutions (Get a rating)

DIRTT Environmental Solutions Ltd. designs, manufactures and installs pre-engineered interior solutions for use in commercial spaces for various industries and businesses in the United States, Canada and internationally. Its ICE interior construction software provides end-to-end integration, design, control engineering, manufacturing and installation services. The company’s interior construction solutions include pre-engineered and custom modular interior walls, ceilings and floors; decorative and functional carpentry; electrical infrastructure; network infrastructure; and pre-installed medical gas piping systems. It offers interior design solutions through a network of independent distributor partners. It serves commercial, healthcare, education, hospitality and other industries, as well as medical gas piping systems for healthcare. DIRTT Environmental Solutions Ltd. was incorporated in 2003 and is headquartered in Calgary, Canada.

About Cloudflare (Get a rating)

Cloud Flare logoCloudFlare, Inc. operates as a cloud service provider that offers a range of services to businesses around the world. The company offers an integrated cloud-based security solution to secure a range of platform combinations, including public cloud, private cloud, on-premises applications, software as a service, and IoT devices. Its security products include cloud firewall, bot management, distributed denial of service, IoT, SSL/TLS, secure origin connection and rate limiting products. The company also offers performance solutions, which include content delivery and intelligent routing, as well as content, mobile and image optimization solutions. Additionally, it provides reliability solutions including load balancing, anycast network, virtual backbone, DNS, DNS resolver, online solutions, and virtual waiting rooms. Additionally, the company offers Cloudflare internal infrastructure solutions, including on-ramps, which connect users, devices, or locations to its network; and filters, which are the products that protect, inspect and privilege data. Additionally, it provides developer-based solutions, such as serverless/programmable network computing, website development, domain registration, Cloudflare apps, data location analytics and management. ; Consumer DNS Resolver, a consumer application for browsing the Internet; and Consumer VPN for consumers to secure and accelerate traffic on mobile devices. The company serves clients in technology, healthcare, financial services, consumer and retail, non-profit organizations, as well as government. CloudFlare, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.



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