Comparing Docebo (NASDAQ:DCBO) & Cloudflare (NYSE:NET)

Cloudflare (NYSE:NET) and Docebo (NASDAQ:DCBO) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Institutional and Insider Ownership

82.7% of Cloudflare shares are held by institutional investors. Comparatively, 53.2% of Docebo shares are held by institutional investors. 12.8% of Cloudflare shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Cloudflare and Docebo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cloudflare	-13.10%	-13.22%	-3.53%
Docebo	1.57%	12.45%	6.57%

Valuation and Earnings

This table compares Cloudflare and Docebo’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cloudflare	$1.30 billion	19.37	-$183.95 million	($0.53)	-140.38
Docebo	$180.84 million	7.66	$2.84 million	$0.09	506.95

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

Risk & Volatility

Cloudflare has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Docebo has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cloudflare and Docebo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cloudflare	4	10	9	0	2.22
Docebo	0	1	10	0	2.91

Cloudflare presently has a consensus price target of $90.17, suggesting a potential upside of 21.20%. Docebo has a consensus price target of $61.40, suggesting a potential upside of 34.59%. Given Docebo’s stronger consensus rating and higher probable upside, analysts clearly believe Docebo is more favorable than Cloudflare.

Summary

Docebo beats Cloudflare on 10 of the 14 factors compared between the two stocks.

About Cloudflare

Cloudflare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products. It offers website and application performance solutions, including content delivery, load balancing, DNS, agro smart routing, video stream delivery, web optimization, cache reserve, cloudfare waiting room, and cloudfare data localization suite; SASE platform through cloudfare one that provides a cloud-based network-as-a-service; network services which deliver network connectivity, security, and performance, including magic WAN, magic transit, magic firewall, cloudflare network interconnect, and spectrum. In addition, the company provides zero trust services, such as cloudflare access, cloudflare gateway, remote browser isolation, cloud access security broker, cloud email security, and data loss prevention products that protects, inspects, and provides privilege rules to grant access to data and application. Further, it provides developer-based solutions consisting of cloudflare workers, R2 object storage, workers KV, durable objects, cloudfare pages, cloudfare stream, and cloudfare images; and consumer products comprising of 1.1.1.1, a DNS resolver, WARP, a virtual private network, and cloudfare registrar that secures registration and management of domain names. The company serves customers in the technology, healthcare, financial services, consumer and retail, industrial, and non-profit industries, as well as government. Cloudflare, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

About Docebo

Docebo Inc. operates as a learning management software company that provides artificial intelligence (AI)-powered learning platform in North America and internationally. It offers Learning Management System (LMS) to train internal and external workforces, partners, and customers. The company's cloud platform consists of a learning suite, which includes Docebo Learn LMS, a cloud-based learning platform that allows learning administrators to deliver personalized learning; Docebo Shape, an AI-based learning content creation tool, which enables learning administrators to turn internal and external resources into engaging, multilingual, and microlearning content to share across the business; Docebo Content that allows off-the-shelf learning content by partnering content specialist; Docebo Learning Impact, a learning measurement tool that enables administrators to prove and improve training programs; Docebo Learn Data, which gives a comprehensive view on learning data to business results; Docebo Connect that connects Docebo to custom tech stack and making integrations; and Docebo Flow that allows businesses to directly inject learning into the flow of work. It also offers Docebo for Salesforce, a native integration that leverages Salesforce's application programming interface and technology architecture to produce a learning experience; Docebo Embed that allows original equipment manufacturers to embed and re-sell Docebo as a part of their software; Docebo Mobile App Publisher product that allows companies to create and publish own branded version of Docebo Go.Learn mobile learning applications; Docebo Extended Enterprise which breeds customer education, partner enablement, and retention; Docebo Discover, Coach & Share that enhances the learning experience to create a culture of social learning; and Docebo for Microsoft Teams, that brings learning directly into Microsoft Teams. The company was founded in 2005 and is headquartered in Toronto, Canada.