Critical Contrast: Avalara (AVLR) versus Cloudera (CLDR)

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Avalara (NYSE:AVLR) and Cloudera (NYSE:CLDR) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Avalara and Cloudera’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avalara N/A N/A N/A
Cloudera -41.30% -30.72% -18.19%

Analyst Recommendations

This is a summary of recent recommendations for Avalara and Cloudera, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avalara 0 1 6 0 2.86
Cloudera 0 5 12 1 2.78

Avalara presently has a consensus price target of $52.43, suggesting a potential downside of 4.33%. Cloudera has a consensus price target of $19.25, suggesting a potential upside of 78.24%. Given Cloudera’s higher probable upside, analysts plainly believe Cloudera is more favorable than Avalara.

Earnings & Valuation

This table compares Avalara and Cloudera’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avalara $272.10 million 13.99 -$75.55 million ($1.08) -50.74
Cloudera $479.94 million 6.05 -$192.65 million ($1.14) -9.47

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

Institutional & Insider Ownership

70.6% of Avalara shares are held by institutional investors. Comparatively, 81.1% of Cloudera shares are held by institutional investors. 30.9% of Cloudera shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

About Avalara

Avalara, Inc. provides cloud-based solutions for transaction tax compliance worldwide. It offers a suite of compliance solutions that enable businesses to address the complexity of transaction tax compliance; process transactions in real time; produce detailed records of transaction tax determinations; and reduce errors, audit exposure, and total transaction tax compliance costs. The company's solutions include AvaTax, a solution for determining sales tax in the United States; Avalara Returns for tax return preparation, filing, and remittance; and Avalara Compliance Document Management solution, which creates, validates, stores, and manages sales tax exemption and reseller certificates. It also provides professional services, including nexus studies and analysis, voluntary compliance initiatives, tax registrations, and specialized tax research; MatrixMaster, a product taxability database for retail operations; Avalara CloudConnect, a hardware device for processing and storing transactions on-site for regularly scheduled uploads to AvaTax; Avalara Licensing, an online platform for business licenses and sales tax registrations; VAT Expert, a Web-based solution that checks the validity of customer and supplier value-added tax (VAT) numbers and provides VAT determinations in the form of invoices; and Brazilian tax compliance solutions that address the Brazilian transaction tax regimes through electronic compliance report validation, electronic invoice authentication and preparation, tax determination, and returns preparation. The company was formerly known as Advantage Solutions, Inc. and changed its name to Avalara, Inc. in December 2005. Avalara, Inc. was incorporated in 1999 and is headquartered in Seattle, Washington.

About Cloudera

Cloudera, Inc. provides a suite of data analytics and management products in the United States, Europe, and Asia. The company operates through two segments, Subscription and Services. It offers Cloudera Enterprise Data Hub that allows companies to execute various analytic functions against a shared set of governed and secures data in public and private clouds, and data centers; Cloudera Data Warehouse, a hybrid cloud solution for self-service analytics; Cloudera Data Science and Engineering enables users to streamline, simplify, and scale big data processing; and Cloudera Operational DB that enables stream processing and real-time analytics on continuously changing data. The company also provides Cloudera DataFlow, a data platform that collects, curates and analyzes data; Hortonworks Data Platform, a data management platform that helps organizations to securely store, process, and analyze various data assets; Cloudera Data Science Workbench that enables self-service data science for the enterprise; Cloudera Altus, a platform-as-a-service offering; and Cloudera Fast Forward Labs, which delivers applied research in machine learning and artificial intelligence to its customers. In addition, it offers Cloudera SDX, a solution that enables common security, governance, and metadata management for multiple analytics functions; Cloudera Workload XM, an analytic workload experience management cloud service; Hortonworks DataPlane Service, a data fabric that enables businesses to discover, manage, and govern their data; and Hortonworks Cybersecurity Platform, which offers a single, comprehensive view of business risk through a security lens. Further, the company provides consulting, professional, and education services. It serves corporate enterprises and public sector organizations primarily through its direct sales force. The company has strategic partnerships with Intel Corporation. Cloudera, Inc. was founded in 2008 and is headquartered in Palo Alto, California.

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