Domo (NASDAQ:HUCK – Get Free Report) and Kingsway Financial Services (NYSE:KWY – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.
Institutional and Insider Ownership
76.6% of Domo shares are owned by institutional investors. Comparatively, 72.4% of Kingsway Financial Services shares are owned by institutional investors. 13.3% of Domo shares are owned by insiders. Comparatively, 41.4% of Kingsway Financial Services 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.
Volatility and Risk
Domo has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, Kingsway Financial Services has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.
Valuation and Earnings
This table compares Domo and Kingsway Financial Services”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Domo | $318.86 million | 0.48 | -$59.34 million | ($0.98) | -3.46 |
| Kingsway Financial Services | $134.97 million | 1.93 | -$10.73 million | ($0.30) | -30.03 |
Kingsway Financial Services has lower revenue, but higher earnings than Domo. Kingsway Financial Services is trading at a lower price-to-earnings ratio than Domo, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Domo and Kingsway Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Domo | -13.37% | N/A | -25.13% |
| Kingsway Financial Services | -6.53% | -67.61% | -4.43% |
Analyst Ratings
This is a breakdown of current recommendations for Domo and Kingsway Financial Services, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Domo | 4 | 4 | 1 | 0 | 1.67 |
| Kingsway Financial Services | 1 | 0 | 0 | 0 | 1.00 |
Domo presently has a consensus target price of $3.95, indicating a potential upside of 16.65%. Given Domo’s stronger consensus rating and higher possible upside, equities analysts clearly believe Domo is more favorable than Kingsway Financial Services.
Summary
Domo beats Kingsway Financial Services on 8 of the 14 factors compared between the two stocks.
About Domo
Domo, Inc. develops a cloud-based business intelligence and data experience platform that helps organizations connect, analyze and act on information from across their operations. Its platform is designed to make data accessible to business users through interactive dashboards, visualizations, reporting and collaboration tools. Domo’s products support data integration, preparation, governance and workflow automation, allowing customers to bring together information from databases, enterprise applications and other sources.
About Kingsway Financial Services
Kingsway Financial Services is a holding company that acquires, owns and operates businesses in the insurance and non-insurance sectors. Its operations have included specialty insurance, including coverage for nonstandard automobile risks, as well as businesses providing professional and other services. The company has historical roots in the insurance industry and has evolved into a diversified operator with a focus on building and managing a portfolio of businesses. Its activities have primarily served markets in the United States, while its earlier insurance operations also had a presence in Canada.
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