Financial Analysis: Backblaze (NASDAQ:BLZE) and XBP Europe (NASDAQ:XBP)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Backblaze	-42.34%	-104.71%	-36.79%
XBP Europe	N/A	N/A	-18.77%

Valuation and Earnings

This table compares Backblaze and XBP Europe”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Backblaze	$102.02 million	3.02	-$59.71 million	($1.26)	-5.69
XBP Europe	$166.57 million	0.18	-$11.05 million	N/A	N/A

XBP Europe has higher revenue and earnings than Backblaze.

Risk & Volatility

Backblaze has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, XBP Europe has a beta of -0.33, indicating that its stock price is 133% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Backblaze and XBP Europe, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Backblaze	0	0	4	0	3.00
XBP Europe	0	0	0	0	N/A

Backblaze currently has a consensus target price of $11.50, suggesting a potential upside of 60.39%. Given Backblaze’s higher probable upside, equities research analysts plainly believe Backblaze is more favorable than XBP Europe.

Insider and Institutional Ownership

54.0% of Backblaze shares are held by institutional investors. Comparatively, 15.7% of XBP Europe shares are held by institutional investors. 5.2% of Backblaze shares are held by insiders. Comparatively, 82.5% of XBP Europe 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.

Summary

XBP Europe beats Backblaze on 6 of the 11 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 XBP Europe

XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.