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 investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.
Analyst Recommendations
This is a summary of recent ratings and target prices 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, suggesting a potential upside of 15.29%. Given Domo’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Domo is more favorable than Kingsway Financial Services.
Volatility & Risk
Domo has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500. Comparatively, Kingsway Financial Services has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.
Insider & Institutional Ownership
76.6% of Domo shares are held by institutional investors. Comparatively, 72.4% of Kingsway Financial Services shares are held by institutional investors. 13.3% of Domo shares are held by insiders. Comparatively, 41.4% of Kingsway Financial Services shares are held 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.
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% |
Valuation and Earnings
This table compares Domo and Kingsway Financial Services”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Domo | $318.86 million | 0.49 | -$59.34 million | ($0.98) | -3.50 |
| Kingsway Financial Services | $134.97 million | 1.81 | -$10.73 million | ($0.30) | -28.13 |
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.
Summary
Domo beats Kingsway Financial Services on 7 of the 13 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 Inc. (NYSE:KWY) is a Canadian-based holding company that owns and operates businesses in the specialty insurance and insurance-services sectors. Its portfolio includes companies providing specialty insurance products, extended warranty programs, and related administrative and claims services. Historically, Kingsway operated primarily as a specialty insurance provider, including nonstandard automobile insurance businesses in the United States and Canada. The company has since focused on managing and developing a diversified group of insurance and non-insurance subsidiaries, with operations serving customers principally in North America.
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