Comparing Amadeus IT Group (OTCMKTS:AMADY) and Fastly (NASDAQ:FSLY)

Fastly (NASDAQ:FSLY) and Amadeus IT Group (OTCMKTS:AMADY) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Volatility & Risk

Fastly has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Amadeus IT Group has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Earnings & Valuation

This table compares Fastly and Amadeus IT Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fastly	$687.17 million	5.49	-$121.68 million	($0.53)	-44.69
Amadeus IT Group	$7.37 billion	3.69	$1.51 billion	$3.53	17.86

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

Institutional & Insider Ownership

79.7% of Fastly shares are owned by institutional investors. 4.2% of Fastly shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Fastly and Amadeus IT Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fastly	-11.80%	-6.31%	-4.04%
Amadeus IT Group	19.86%	29.84%	12.46%

Analyst Ratings

This is a breakdown of recent recommendations for Fastly and Amadeus IT Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fastly	2	5	7	1	2.47
Amadeus IT Group	1	1	4	0	2.50

Fastly presently has a consensus target price of $27.42, indicating a potential upside of 15.74%. Given Fastly’s higher possible upside, equities analysts plainly believe Fastly is more favorable than Amadeus IT Group.

Summary

Amadeus IT Group beats Fastly on 9 of the 15 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 Amadeus IT Group

Amadeus IT Group, S.A., together with its subsidiaries, operates as a transaction processor for the travel and tourism industry worldwide. The company operates through three segments: Air Distribution, Air IT Solutions, and Hospitality & Other Solutions. The company acts as an international network providing real-time search, pricing, booking, and ticketing services, and other processing solutions through Amadeus GDS, Altéa PSS, and New Skies platforms. It also offers travel providers a portfolio of technology solutions, which automate certain mission-critical business processes, such as reservations, inventory management, and departure control. In addition, the company is involved in the provision of software development and definition, software distribution, regional support, data processing, intermediation, computer consulting, installation of industrial machinery and equipment, consultancy and technology development services for payments, and information technology services; financial activities; and e-commerce business. It serves providers of travel products and services, such as airlines, airports, hotels, tour operators, insurance companies, land and sea transport companies, travel sellers and brokers, and travel buyers. The company was formerly known as Amadeus IT Holding, S.A. and changed its name to Amadeus IT Group, S.A. in August 2016. Amadeus IT Group, S.A. was founded in 1987 and is headquartered in Madrid, Spain.