Head to Head Analysis: Domo (DOMO) and Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) and Domo (NASDAQ:DOMO) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for Microsoft and Domo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microsoft 1 1 31 1 2.94
Domo 0 1 6 0 2.86

Microsoft currently has a consensus price target of $122.45, indicating a potential upside of 11.75%. Domo has a consensus price target of $27.00, indicating a potential upside of 56.07%. Given Domo’s higher possible upside, analysts clearly believe Domo is more favorable than Microsoft.

Insider & Institutional Ownership

71.9% of Microsoft shares are owned by institutional investors. Comparatively, 51.2% of Domo shares are owned by institutional investors. 1.5% of Microsoft shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Microsoft $110.36 billion 7.64 $16.57 billion $3.88 28.24
Domo N/A N/A N/A N/A N/A

Microsoft has higher revenue and earnings than Domo.

Dividends

Microsoft pays an annual dividend of $1.68 per share and has a dividend yield of 1.5%. Domo does not pay a dividend. Microsoft pays out 43.3% of its earnings in the form of a dividend. Microsoft has raised its dividend for 14 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Microsoft 16.38% 39.86% 12.78%
Domo N/A N/A N/A

Summary

Microsoft beats Domo on 11 of the 13 factors compared between the two stocks.

Microsoft Company Profile

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its company's Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, such as Office, Exchange, SharePoint, Skype for Business, Microsoft Teams, and related Client Access Licenses (CALs); Office 365 consumer services, including Skype, Outlook.com, and OneDrive; LinkedIn online professional network; and Dynamics business solutions comprising financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and medium businesses, large organizations, and divisions of enterprises. The company's Intelligent Cloud segment licenses server products and cloud services, such as SQL Server, Windows Server, Visual Studio, System Center, and related CALs, as well as Azure, a cloud platform; enterprise services, including premier support and Microsoft consulting services to assist customers in developing, deploying, and managing Microsoft server and desktop solutions, as well as providing training and certification to developers and IT professionals on Microsoft products. Its More Personal Computing segment offers Windows OEM, volume, and other non-volume licensing of the Windows operating system; patent licensing, Windows Internet of Things, and MSN display advertising; devices comprising Surface, PC accessories, and other intelligent devices; Xbox hardware and software and services; and Bing and Bing Ads search advertising. The company markets and distributes its products through original equipment manufacturers, distributors, and resellers, as well as through online and Microsoft retail stores. Microsoft Corporation has collaboration with E.ON to develop smart connected home solutions. The company was founded in 1975 and is headquartered in Redmond, Washington.

Domo Company Profile

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 also offers a Programmatic Revenue Solution that brings complex data from ad servers and sell-side platforms into a set of cards and dashboards built on practices in the ad tech industry. 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.

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