Financial Analysis: Fiverr International (NYSE:FVRR) versus OLO (NYSE:OLO)

OLO (NYSE:OLO) and Fiverr International (NYSE:FVRR) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Profitability

This table compares OLO and Fiverr International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OLO	-9.36%	-0.47%	-0.42%
Fiverr International	3.17%	5.67%	1.91%

Volatility and Risk

OLO has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Fiverr International has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500.

Institutional and Insider Ownership

93.4% of OLO shares are owned by institutional investors. Comparatively, 59.0% of Fiverr International shares are owned by institutional investors. 39.3% of OLO shares are owned by company insiders. Comparatively, 15.9% of Fiverr International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares OLO and Fiverr International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OLO	$257.81 million	3.10	-$58.29 million	($0.29)	-17.17
Fiverr International	$372.22 million	2.41	$3.68 million	$0.22	105.55

Fiverr International has higher revenue and earnings than OLO. OLO is trading at a lower price-to-earnings ratio than Fiverr International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for OLO and Fiverr International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OLO	0	1	3	0	2.75
Fiverr International	0	4	6	0	2.60

OLO presently has a consensus price target of $8.67, suggesting a potential upside of 74.03%. Fiverr International has a consensus price target of $31.30, suggesting a potential upside of 34.80%. Given OLO’s stronger consensus rating and higher probable upside, equities analysts plainly believe OLO is more favorable than Fiverr International.

Summary

Fiverr International beats OLO on 9 of the 14 factors compared between the two stocks.

About OLO

Olo Inc. operates an open SaaS platform for restaurants in the United States. The company’s platform enables on-demand digital commerce operations, which cover digital ordering, delivery, front-of-house management, and payments. Its solutions include Order, a suite of solutions powering restaurant brands’ on-demand commerce operations, enabling digital ordering, delivery, and channel management through ordering, dispatch, rails, switchboard, network, virtual brands, kiosk, catering, and sync modules; Engage, a suite of restaurant-centric marketing solutions optimizing guest lifetime value by strengthening and enhancing the restaurants’ direct guest relationships, through the guest data platform, marketing, sentiment, and host modules; and Pay, a frictionless payment platform that enables restaurants to grow and protect their digital business through customer payment experience that offers advanced fraud prevention to improve authorization rates for valid transactions, and increase basket conversion through its Olo Pay module. The company was formerly known as Mobo Systems, Inc. and changed its name to Olo Inc. in January 2020. Olo Inc. was incorporated in 2005 and is headquartered in New York, New York.

About Fiverr International

Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company's platform includes various categories in ten verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and tech, business, data, lifestyle, and photography. It also offers value-added products, including subscription-based content marketing, back-office, learning and development offerings, creative talent, and freelancer management platforms. In addition, the company provides a suite of professional solutions that enable businesses to engage with freelancers; Fiverr Pro, a marketplace; Fiverr Certified, a storefront to access certified experts for partner vendors; Fiverr Enterprise, a gateway to source and manage on-demand and long-term freelancers. Further, it offers various value-added products, including Promoted Gigs which allows sellers to advertise their services on the platform; and Seller Plus, a subscription program that equips sellers with advanced tools. The company's buyers include businesses of various sizes, as well as sellers comprise a group of freelancers and agencies. Fiverr International Ltd. was incorporated in 2010 and is headquartered in Tel Aviv, Israel.