Financial Review: Versus Systems (NASDAQ:VS) and Domo (NASDAQ:DOMO)

Versus Systems (NASDAQ:VS) and Domo (NASDAQ:DOMO) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Versus Systems	$2.18 million	3.09	-$1.79 million	($0.35)	-3.10
Domo	$318.86 million	0.49	-$59.34 million	($1.33)	-2.61

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

Insider & Institutional Ownership

60.7% of Versus Systems shares are owned by institutional investors. Comparatively, 76.6% of Domo shares are owned by institutional investors. 0.2% of Versus Systems shares are owned by company insiders. Comparatively, 13.3% of Domo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Versus Systems has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Domo has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Versus Systems	N/A	-70.36%	-61.70%
Domo	-13.37%	N/A	-25.31%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Versus Systems and Domo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Versus Systems	1	0	0	0	1.00
Domo	4	4	1	0	1.67

Domo has a consensus target price of $3.95, indicating a potential upside of 13.79%. Given Domo’s stronger consensus rating and higher possible upside, analysts clearly believe Domo is more favorable than Versus Systems.

Summary

Domo beats Versus Systems on 10 of the 14 factors compared between the two stocks.

About Versus Systems

Versus Systems Inc. develops and operates a business-to-business software platform in the United States and Canada. The company offers eXtreme Engagement Online platform that is designed primarily for in-venue main-board work in stadiums and arenas; Filter Fan Cam (FFC) platform, an augmented reality filtering tool that can be used for mobile and in-venue applications; and Winfinite, which allows brands, media companies, and advertising agencies to reach out to customers directly on their mobile devices. It also offers business-to-business software platform that allows video game publishers, developers, and other interactive media content creators in-game prizing and rewards based on the completion of in-content challenges. In addition, the company provides XEO technology platform that offers online audience engagement. It primarily sells its access to platform and service offerings through its direct sales organization. Versus Systems Inc. is headquartered in Vancouver, Canada.

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.