Reviewing Domo (NASDAQ:DOMO) and Where Food Comes From (NASDAQ:WFCF)

Where Food Comes From (NASDAQ:WFCF) and Domo (NASDAQ:DOMO) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

18.8% of Where Food Comes From shares are owned by institutional investors. Comparatively, 76.6% of Domo shares are owned by institutional investors. 49.2% of Where Food Comes From shares are owned by company insiders. Comparatively, 14.0% of Domo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Where Food Comes From and Domo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Where Food Comes From	8.42%	21.08%	13.10%
Domo	-25.32%	N/A	-38.46%

Risk and Volatility

Where Food Comes From has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Domo has a beta of 2.45, meaning that its stock price is 145% more volatile than the S&P 500.

Valuation & Earnings

This table compares Where Food Comes From and Domo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Where Food Comes From	$25.14 million	2.35	$2.15 million	$0.39	28.21
Domo	$318.37 million	0.95	-$75.57 million	($2.16)	-3.62

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Where Food Comes From and Domo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Where Food Comes From	0	0	0	0	N/A
Domo	0	4	1	0	2.20

Domo has a consensus target price of $9.60, suggesting a potential upside of 22.92%. Given Domo’s higher probable upside, analysts clearly believe Domo is more favorable than Where Food Comes From.

Summary

Where Food Comes From beats Domo on 8 of the 13 factors compared between the two stocks.

About Where Food Comes From

Where Food Comes From, Inc., together with its subsidiaries, operates as a third-party food verification company in North America. The company operates through Verification and Certification, and Professional Services segments. It conducts on-site and desk audits to verify that claims being made about livestock, food, other specialty crops, and agricultural and aquaculture products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education. It also offers professional services and technology solutions; verification solutions; and consulting services, as well as sells hardware. The company serves beef and pork packers, organic producers and processors, and specialty retail chains. The company was formerly known as Integrated Management Information, Inc. and changed its name to Where Food Comes From, Inc. in December 2012. Where Food Comes From, Inc. was founded in 1996 and is based in Castle Rock, Colorado.

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.