BlackLine (NASDAQ:BL) & Leafly (NASDAQ:LFLY) Financial Comparison

BlackLine (NASDAQ:BL) and Leafly (NASDAQ:LFLY) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Profitability

This table compares BlackLine and Leafly’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlackLine	19.83%	31.02%	4.92%
Leafly	-14.65%	N/A	-25.26%

Institutional and Insider Ownership

95.1% of BlackLine shares are owned by institutional investors. Comparatively, 15.6% of Leafly shares are owned by institutional investors. 9.5% of BlackLine shares are owned by company insiders. Comparatively, 7.6% of Leafly shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for BlackLine and Leafly, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackLine	2	6	4	0	2.17
Leafly	0	0	2	0	3.00

BlackLine currently has a consensus target price of $64.10, suggesting a potential upside of 1.63%. Leafly has a consensus target price of $7.59, suggesting a potential upside of 409.40%. Given Leafly’s stronger consensus rating and higher probable upside, analysts plainly believe Leafly is more favorable than BlackLine.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlackLine	$590.00 million	6.68	$58.17 million	$0.98	64.36
Leafly	$42.25 million	0.11	-$9.50 million	($2.32)	-0.64

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

Risk and Volatility

BlackLine has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Leafly has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Summary

BlackLine beats Leafly on 11 of the 14 factors compared between the two stocks.

About BlackLine

BlackLine, Inc. provides cloud-based solutions to automate and streamline accounting and finance operations worldwide. It offers financial close management solutions, such as account reconciliations that provides a centralized workspace for users to collaborate on account reconciliations; transaction matching that analyzes and reconciles individual transactions; task management to create and manage processes and task lists; and financial reporting analytics that enables analysis and validation of financial data. The company's also provides journal entry that allows users to generate, review, and post manual journal entries; variance analysis that monitors and identifies anomalous fluctuations in balance sheet and income statement account balances; consolidation integrity manager that manages the automated system-to-system tie-out process; compliance, an integrated solution that facilitates compliance-related initiatives, consolidates project management, and provides visibility over control self-assessments and testing; and smart close for SAP solution. In addition, it offers blackline cash application, and credit and risk, collections, disputes and deductions, and team and task management, as well as AR intelligence solutions and electronic invoicing and compliance. Further, the company provides intercompany create functionality that stores permissions and business logic exceptions by entity, service, and transaction type; intercompany balance and resolve, which records an organization's intercompany transactions; and netting and settlement that enables open intercompany transactions, which integrate with treasury systems. The company sells its solutions primarily through direct sales force to multinational corporations, large domestic enterprises, and mid-market companies across various industries. BlackLine, Inc. was incorporated in 2001 and is headquartered in Woodland Hills, California.

About Leafly

Leafly Holdings, Inc. owns and operates a platform to provide consumers with cannabis information and connects consumers to cannabis brands and licensed retailers. The company offers subscription-based marketplace listings, digital advertising solutions, and software as a service-based tools to cannabis retailers; and information, reviews, menus, and ordering and delivery options to its audience through its website and mobile applications. Leafly Holdings, Inc. was founded in 2010 and is headquartered in Seattle, Washington.