Domo (NASDAQ:DOMO) and New Relic (NYSE:NEWR) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Volatility & Risk
Domo has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, New Relic has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
This table compares Domo and New Relic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Domo and New Relic’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Domo||$142.46 million||5.01||-$154.31 million||($9.43)||-2.77|
|New Relic||$479.23 million||10.14||-$40.89 million||($0.31)||-268.52|
New Relic has higher revenue and earnings than Domo. New Relic is trading at a lower price-to-earnings ratio than Domo, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Domo and New Relic, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Domo currently has a consensus target price of $47.25, suggesting a potential upside of 81.17%. New Relic has a consensus target price of $114.55, suggesting a potential upside of 37.61%. Given Domo’s stronger consensus rating and higher probable upside, research analysts clearly believe Domo is more favorable than New Relic.
Insider and Institutional Ownership
69.7% of Domo shares are held by institutional investors. Comparatively, 78.3% of New Relic shares are held by institutional investors. 22.0% of Domo shares are held by company insiders. Comparatively, 17.4% of New Relic shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
New Relic beats Domo on 11 of the 15 factors compared between the two stocks.
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.
About New Relic
New Relic, Inc., a software-as-a-service company, provides various digital products worldwide. Its cloud-based platform and suite of products include New Relic Platform, which enable organizations to collect, store, and analyze data. The company offers New Relic Application Performance Management that provides visibility into the performance and usage of server-based applications, such as data pertaining to response time, transaction throughput, error rates, top transactions, and user satisfaction; New Relic Mobile, which provides code-level visibility into the performance and health of mobile applications running on the iOS and Android mobile operating systems; and New Relic Browser that monitors the page view experiences of actual end-users for desktop and mobile browser-based applications. It also provides New Relic Synthetics, which simulates usage and reproduces business-critical functionality that enables its users to test their software throughout the entire development life cycle; New Relic Infrastructure that provides a view of the health and configuration changes for an enterprise's entire host ecosystem across various environments; and New Relic Insights that enables technology and business users to perform real-time analysis. In addition, the company offers New Relic Applied Intelligence platform; New Relic's alerting platform, a centralized notification system that delivers alerts from across the products that make up the New Relic Platform; and New Relic's plugins architecture, which offers a plugin architecture, including application programming interfaces and software development kits for customers and partners to embed and extend its solution into their products. The company sells its products through direct sales organizations, online and offline sales, and marketing activities. New Relic, Inc. was founded in 2007 and is headquartered in San Francisco, California.
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