Critical Analysis: Zeta Global (NYSE:ZETA) & Domo (NASDAQ:DOMO)

Zeta Global (NYSE:ZETA) and Domo (NASDAQ:DOMO) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Valuation and Earnings

This table compares Zeta Global and Domo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zeta Global	$728.72 million	7.29	-$187.48 million	($0.70)	-31.97
Domo	$318.99 million	1.14	-$75.57 million	($2.16)	-4.37

Domo has lower revenue, but higher earnings than Zeta Global. Zeta Global 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 Zeta Global and Domo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zeta Global	-13.35%	-45.22%	-18.84%
Domo	-25.32%	N/A	-38.46%

Analyst Ratings

This is a summary of current ratings and recommmendations for Zeta Global and Domo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zeta Global	0	3	11	1	2.87
Domo	0	4	1	0	2.20

Zeta Global currently has a consensus price target of $38.00, indicating a potential upside of 69.79%. Domo has a consensus price target of $9.60, indicating a potential upside of 1.59%. Given Zeta Global’s stronger consensus rating and higher possible upside, equities analysts clearly believe Zeta Global is more favorable than Domo.

Institutional and Insider Ownership

75.8% of Zeta Global shares are held by institutional investors. Comparatively, 76.6% of Domo shares are held by institutional investors. 25.5% of Zeta Global shares are held by company insiders. Comparatively, 14.0% of Domo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Zeta Global has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Domo has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500.

Summary

Zeta Global beats Domo on 10 of the 15 factors compared between the two stocks.

About Zeta Global

Zeta Global Holdings Corp. operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally. The company’s Zeta Marketing Platform analyzes billions of structured and unstructured data points to predict consumer intent by leveraging sophisticated machine learning algorithms and the industry’s opted-in data set for omnichannel marketing; and Consumer Data platform ingests, analyzes, and distills disparate data points to generate a single view of a consumer, encompassing identity, profile characteristics, behaviors, and purchase intent. It also offers various types of product suites, such as agile intelligence suite, which synthesizes Zeta’s data and data generated by its customers to uncover consumer insights that are translated into marketing programs; and CDP, which helps in consolidating multiple databases and internal and external data feeds and organize data based on needs and performance metrics. Zeta Global Holdings Corp. was incorporated in 2007 and is headquartered in New York, New York.

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.