Domo (NASDAQ:DOMO) versus Clearwater Analytics (NYSE:CWAN) Head-To-Head Analysis

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

Volatility & Risk

Clearwater Analytics has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Domo has a beta of 1.77, meaning that its share price is 77% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Clearwater Analytics and Domo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearwater Analytics	0	2	9	0	2.82
Domo	1	3	5	1	2.60

Clearwater Analytics currently has a consensus target price of $30.56, indicating a potential upside of 41.79%. Domo has a consensus target price of $17.00, indicating a potential upside of 52.33%. Given Domo’s higher probable upside, analysts plainly believe Domo is more favorable than Clearwater Analytics.

Institutional & Insider Ownership

50.1% of Clearwater Analytics shares are owned by institutional investors. Comparatively, 76.6% of Domo shares are owned by institutional investors. 3.3% of Clearwater Analytics shares are owned by insiders. Comparatively, 15.2% of Domo shares are owned 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.

Valuation and Earnings

This table compares Clearwater Analytics and Domo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearwater Analytics	$451.80 million	13.96	$424.38 million	$1.53	14.08
Domo	$318.36 million	1.45	-$81.93 million	($1.94)	-5.75

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clearwater Analytics	61.28%	2.77%	2.01%
Domo	-24.32%	N/A	-32.99%

Summary

Clearwater Analytics beats Domo on 10 of the 15 factors compared between the two stocks.

About Clearwater Analytics

Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities in the United States and internationally. It offers investment accounting and reporting, performance measurement, compliance monitoring, and risk analytics solutions. The company’s Clearwater Prism SaaS-based data and reporting platform for investment data delivers a range of product modules, including Prism reporting and statements, Prism connectors, Prism data ops, and Prism managed services. It also provides Clearwater JUMP that provides a modular front, middle and back office solution to investment managers, private banks, and insurer, as well as portfolio management and order management, unit-linked funds, tri-partite templates, and full trade life cycle solutions. In addition, the company offers Clearwater LPx, a full-service solution for private funds that delivers complete, timely, accurate, and consumable data for limited partnerships; and Clearwater MLx, a comprehensive mortgage loan investment solution that provides investors to drive growth and make informed decisions, oversight, and reporting capabilities for mortgage loan investments, as well as enhances risk reporting, servicer tracking, oversight, and accounting capabilities. The company was founded in 2004 and is headquartered in Boise, Idaho.

About Domo

Domo, Inc., together with its subsidiaries, operates a cloud-based business intelligence platform in North America, Western Europe, Canada, Australia, and Japan. Its platform digitally connects from the chief executive officer to the frontline employee with the various people, data, and systems in an organization, as well as giving them access to real-time data and insights, and allowing them to manage business via various browsers and visualization engines accessible across laptops, TV screens, monitors, tablets, and smartphones. The company was formerly known as Domo Technologies, Inc. and changed its name to Domo, Inc. in December 2011. Domo, Inc. was incorporated in 2010 and is headquartered in American Fork, Utah.