Innovid (NYSE:CTV) & Domo (NASDAQ:DOMO) Critical Review

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Innovid and Domo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovid	0	4	0	0	2.00
Domo	0	5	2	0	2.29

Innovid currently has a consensus target price of $2.75, indicating a potential downside of 12.42%. Domo has a consensus target price of $10.67, indicating a potential downside of 27.22%. Given Innovid’s higher probable upside, equities research analysts clearly believe Innovid is more favorable than Domo.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovid	$151.56 million	3.08	-$31.91 million	($0.09)	-34.89
Domo	$317.05 million	1.85	-$75.57 million	($1.89)	-7.75

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

Institutional and Insider Ownership

25.5% of Innovid shares are owned by institutional investors. Comparatively, 76.6% of Domo shares are owned by institutional investors. 9.5% of Innovid shares are owned by insiders. Comparatively, 15.2% of Domo shares are owned by 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.

Volatility and Risk

Innovid has a beta of 3.25, suggesting that its stock price is 225% more volatile than the S&P 500. Comparatively, Domo has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Innovid	-9.09%	-7.08%	-5.70%
Domo	-26.05%	N/A	-39.27%

About Innovid

Innovid Corp. operates an independent software platform that provides ad serving, measurement, and creative services. It offers advertising services for the creation, delivery, and measurement of TV ads across connected TV, mobile TV, and desktop TV environments to advertisers, publishers, and media agencies. The company serves consumer packaged goods, pharmaceutical and healthcare, retail, financial services, and automotive and technology industries; third party agencies; and publishers in the United States, Canada, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. Innovid 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.