Analyzing Backblaze (NASDAQ:BLZE) & Earlyworks (NASDAQ:ELWS)

Earlyworks (NASDAQ:ELWS) and Backblaze (NASDAQ:BLZE) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Insider & Institutional Ownership

0.5% of Earlyworks shares are held by institutional investors. Comparatively, 54.0% of Backblaze shares are held by institutional investors. 4.2% of Backblaze shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Earlyworks	N/A	N/A	N/A
Backblaze	-13.07%	-16.73%	-7.10%

Volatility & Risk

Earlyworks has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Backblaze has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Earlyworks and Backblaze, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Earlyworks	1	0	0	0	1.00
Backblaze	1	1	8	0	2.70

Backblaze has a consensus price target of $19.71, suggesting a potential upside of 26.78%. Given Backblaze’s stronger consensus rating and higher possible upside, analysts clearly believe Backblaze is more favorable than Earlyworks.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Earlyworks	$440.36 million	0.02	-$1.80 million	N/A	N/A
Backblaze	$156.30 million	6.16	-$25.61 million	($0.34)	-45.74

Earlyworks has higher revenue and earnings than Backblaze.

About Earlyworks

Earlyworks Co., Ltd operates as a blockchain-based technology company in Japan. The company builds products, deliver services, and develop solutions based on its proprietary Grid Ledger System to leverage blockchain technology in various business settings, including advertisement tracking, online visitor management, and sales of non-fungible tokens. It also provides software and system development services; consulting and solution services; blockchain system solution planning; and proposal, design, and development planning services. The company serves the information technology, shipping, real estate, entertainment, cosmetics, and chemical products sectors. Earlyworks Co., Ltd was incorporated in 2018 and is based in Tokyo, Japan.

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.