Adyen (OTCMKTS:ADYYF) versus F5 (NASDAQ:FFIV) Critical Review

Adyen (OTCMKTS:ADYYF) and F5 (NASDAQ:FFIV) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Institutional and Insider Ownership

90.7% of F5 shares are held by institutional investors. 0.6% of F5 shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Adyen and F5’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adyen	N/A	N/A	N/A
F5	19.94%	21.03%	11.41%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Adyen and F5, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adyen	0	2	2	0	2.50
F5	1	6	2	0	2.11

F5 has a consensus target price of $200.89, indicating a potential upside of 2.30%. Given F5’s higher possible upside, analysts clearly believe F5 is more favorable than Adyen.

Valuation & Earnings

This table compares Adyen and F5’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adyen	N/A	N/A	N/A	N/A	N/A
F5	$2.78 billion	4.15	$394.95 million	$8.35	23.52

F5 has higher revenue and earnings than Adyen.

Summary

F5 beats Adyen on 7 of the 8 factors compared between the two stocks.

About Adyen

Adyen N.V. operates a payments platform in Europe, the Middle East, Africa, North America, the Asia Pacific, Latin America. The company's platform integrates payments stack that include gateway, risk management, processing, issuing, acquiring, and settlement services. It offers a back-end infrastructure for authorizing. It serves digital, mobility, platforms and marketplace, retail, food and beverages, subscription, and hospital businesses. Adyen N.V. was incorporated in 2006 and is headquartered in Amsterdam, the Netherlands.

About F5

F5, Inc. provides multi-cloud application security and delivery solutions in the United States, Europe, the Middle East, Africa, and the Asia Pacific region. The company’s distributed cloud services enable its customers to deploy, secure, and operate applications in any architecture, from on-premises to the public cloud. It offers unified, security, networking, and application management solutions, such as web app and API protection; multi-cloud networking; application delivery and deployment; domain name system; content delivery network; and application deployment and orchestration. The company also provides application security and delivery products, including NGINX Plus; NGINX Management Suite; NGINX Ingress Controller; NGINX App Protect; BIG-IP Packaged Software; and BIG-IP Systems. In addition, it provides a range of professional services, including maintenance, consulting, training, and other technical support services. F5, Inc. sells its products to large enterprise businesses, public sector institutions, governments, and service providers through distributors, value-added resellers, managed service providers, systems integrators, and other indirect channel partners. It has partnerships with public cloud providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform. The company was formerly known as F5 Networks, Inc. and changed its name to F5, Inc. in November 2021. F5, Inc. was incorporated in 1996 and is headquartered in Seattle, Washington.