Analyzing Domo (NASDAQ:DOMO) & Momo (NASDAQ:MOMO)

Domo (NASDAQ:DOMO) and Momo (NASDAQ:MOMO) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Domo and Momo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Domo 0 0 4 0 3.00
Momo 0 0 7 0 3.00

Domo presently has a consensus price target of $47.25, suggesting a potential upside of 71.26%. Momo has a consensus price target of $44.33, suggesting a potential upside of 39.68%. Given Domo’s higher probable upside, analysts plainly believe Domo is more favorable than Momo.

Institutional and Insider Ownership

69.8% of Domo shares are owned by institutional investors. Comparatively, 58.6% of Momo shares are owned by institutional investors. 22.0% of Domo shares are owned by company insiders. Comparatively, 61.4% of Momo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Domo and Momo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Domo -95.39% -253.84% -49.09%
Momo 15.96% 23.10% 13.59%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Domo $142.46 million 5.30 -$154.31 million ($9.43) -2.93
Momo $1.95 billion 3.24 $409.54 million $1.96 16.19

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

Summary

Momo beats Domo on 9 of the 12 factors compared between the two stocks.

Domo Company Profile

Domo, Inc. operates a cloud-based platform in the United States. Its platform digitally connects chief executive officer to the frontline employee with the people, data, and systems in an organization, giving them access to real-time data and insights, and allowing them to manage business from smartphones. The company was formerly known as Domo Technologies, Inc. and changed its name to Domo, Inc. in December 2011. Domo, Inc. was founded in 2010 and is headquartered in American Fork, Utah.

Momo Company Profile

Momo Inc. operates a mobile-based social and entertainment platform in the People's Republic of China. The company operates Momo platform that includes its Momo mobile application and various related features, functionalities, tools, and services to users, customers, and platform partners. It offers Momo mobile application that enables users to establish and expand their social relationships based on locations; interests; and recreational activities, including live talent shows, short videos, social games, and other video- and audio-based interactive experiences. The company also operates Tantan, a social and dating app to help its users to find and establish romantic connections, as well as to meet interesting people primarily for young mobile Internet users. The company was formerly known as Momo Technology Company Limited and changed its name to Momo Inc. in July 2014. Momo Inc. was founded in 2011 and is headquartered in Beijing, the People's Republic of China.

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