In the rapidly evolving software application sector, AppLovin Corporation and Domo, Inc. stand out as innovative players shaping digital business landscapes. AppLovin excels in mobile app marketing and monetization, while Domo focuses on cloud-based business intelligence platforms. Both compete for market share by leveraging advanced technology and data analytics. This article will help you discern which company offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between AppLovin Corporation and Domo, Inc. by providing an overview of these two companies and their main differences.
AppLovin Overview
AppLovin Corporation develops a software platform aimed at mobile app developers to improve marketing and monetization globally. Its solutions include AppDiscovery for ad matching, Adjust for analytics and campaign optimization, and MAX for in-app bidding. Founded in 2011 and headquartered in Palo Alto, CA, AppLovin operates primarily in the software application industry, serving advertisers and publishers.
Domo Overview
Domo, Inc. offers a cloud-based business intelligence platform that connects organizational roles with real-time data and insights. This platform facilitates business management from smartphones, aiming to improve decision-making processes. Incorporated in 2010 and based in American Fork, UT, Domo serves clients primarily in the software application sector, with operations in the US, Japan, and internationally.
Key similarities and differences
Both companies operate in the software application industry with a focus on enhancing business performance through technology. AppLovin specializes in mobile app marketing and monetization tools, while Domo focuses on business intelligence and real-time data access. AppLovin has a significantly larger market cap and employee base, whereas Domo emphasizes cloud data connectivity across organizational levels.
Income Statement Comparison
The table below compares the key income statement metrics for the fiscal year 2024 of AppLovin Corporation and Domo, Inc., highlighting their financial scale and profitability.
| Metric | AppLovin Corporation | Domo, Inc. |
|---|---|---|
| Market Cap | 193B | 255M |
| Revenue | 4.71B | 319M |
| EBITDA | 2.34B | -50M |
| EBIT | 1.89B | -59M |
| Net Income | 1.58B | -76M |
| EPS | 4.68 | -2.10 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
AppLovin Corporation
AppLovin demonstrated strong growth from 2020 to 2024, with revenue increasing from 1.45B to 4.71B and net income surging from a loss of 125M to a profit of 1.58B. Margins improved significantly, with a gross margin of 75.22% and net margin at 33.55% in 2024. The latest year showed accelerated revenue growth of 43.44% and a remarkable 208.75% net margin expansion.
Domo, Inc.
Domo’s revenue grew modestly from 210M in 2021 to 317M in 2025, but net income remained negative throughout this period, reaching -82M in 2025. While its gross margin of 74.45% is favorable, the company posted an unfavorable EBIT margin of -18.7% and a net margin of -25.84% in 2025. The most recent year showed a slight revenue decline of -0.61% and worsening net margin by -9.09%.
Which one has the stronger fundamentals?
AppLovin exhibits stronger fundamentals with robust revenue and net income growth, impressive margin improvements, and positive earnings per share trends. Domo, despite steady revenue, struggles with persistent net losses and unfavorable operating margins. AppLovin’s consistent profitability and margin expansion contrast with Domo’s ongoing challenges in achieving profitability.
Financial Ratios Comparison
Below is a comparison of key financial ratios for AppLovin Corporation (APP) and Domo, Inc. (DOMO) based on their most recent fiscal year data.
| Ratios | AppLovin Corporation (APP) 2024 | Domo, Inc. (DOMO) 2025 |
|---|---|---|
| ROE | 1.45 | 0.46 |
| ROIC | 0.39 | 1.95 |
| P/E | 69.06 | -3.98 |
| P/B | 100.11 | -1.84 |
| Current Ratio | 2.19 | 0.56 |
| Quick Ratio | 2.19 | 0.56 |
| D/E (Debt-to-Equity) | 3.26 | -0.76 |
| Debt-to-Assets | 0.61 | 0.63 |
| Interest Coverage | 5.89 | -2.99 |
| Asset Turnover | 0.80 | 1.48 |
| Fixed Asset Turnover | 23.71 | 8.17 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0 | 0 |
Interpretation of the Ratios
AppLovin Corporation
AppLovin shows a balanced profile with half its key ratios favorable, including strong net margin at 33.55% and an impressive ROE of 144.96%, signaling high profitability. However, elevated debt-to-equity at 3.26 and a high price-to-book ratio of 100.11 raise concerns about leverage and valuation. The company does not pay dividends, focusing on growth and reinvestment.
Domo, Inc.
Domo’s ratios present a mixed picture with 50% favorable and 50% unfavorable metrics. The company reports a negative net margin of -25.84%, indicating operational challenges, yet it maintains a solid ROE of 46.23% and a high ROIC of 194.73%. Domo does not pay dividends, reflecting its reinvestment strategy amid ongoing losses and liquidity constraints, as seen in a low current ratio of 0.56.
Which one has the best ratios?
Both companies feature an equal share of favorable ratios, but AppLovin’s strengths in profitability and solvency ratios contrast with Domo’s operational losses and liquidity weaknesses. AppLovin’s slightly favorable overall evaluation suggests stronger financial health, while Domo’s neutral stance reflects higher risk and uncertainty in its current financial metrics.
Strategic Positioning
This section compares the strategic positioning of AppLovin Corporation and Domo, Inc. in terms of market position, key segments, and exposure to technological disruption:
AppLovin Corporation
- Large market cap of $193B, operating in a competitive software application sector with high beta (2.5).
- Revenue driven mainly by advertising ($3.22B) and apps ($1.49B), focusing on mobile app marketing and monetization platforms.
- Operates software solutions including marketing, analytics, and in-app bidding, potentially vulnerable to shifts in mobile advertising technology.
Domo, Inc.
- Small market cap of $255M, competing in software application with moderate beta (1.65).
- Revenue primarily from subscription services ($286M) and professional services ($31M), focusing on cloud-based business intelligence.
- Provides a real-time data and insights platform connecting all organizational levels, facing disruption in cloud BI technology.
AppLovin Corporation vs Domo, Inc. Positioning
AppLovin shows a diversified business model with large-scale advertising and app monetization, benefiting from strong market presence but high competitive pressure. Domo concentrates on subscription-based cloud BI solutions, offering specialized services but with smaller scale and market influence.
Which has the best competitive advantage?
Both companies demonstrate a very favorable moat with growing ROIC above WACC, indicating durable competitive advantages; however, AppLovin’s larger scale and diversified revenue base suggest a more robust economic moat in absolute terms.
Stock Comparison
The stock price movements over the past 12 months reveal a stark contrast between AppLovin Corporation’s strong bullish momentum and Domo, Inc.’s persistent bearish trend, with notable shifts in trading volumes and market sentiment.
Trend Analysis
AppLovin Corporation’s stock showed an overall bullish trend with an 892.51% increase over the past year, though recent data indicate a 10.63% decline and deceleration in price gains. The stock recorded a high of 721.37 and a low of 57.39, with significant volatility (std deviation 201.07).
Domo, Inc.’s stock experienced a bearish trend overall, dropping 44.99% over the same period, with a recent sharper decline of 55.47%. The trend also decelerated, and price fluctuations were much lower (std deviation 3.01) compared to AppLovin.
Comparing both, AppLovin’s stock clearly delivered the highest market performance with a substantial positive return, while Domo’s stock trended downward throughout the year.
Target Prices
The current analyst consensus presents a clear outlook on the target prices for AppLovin Corporation and Domo, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| AppLovin Corporation | 860 | 630 | 756.33 |
| Domo, Inc. | 13 | 10 | 11.5 |
Analysts expect AppLovin’s stock to rise significantly from its current price of 570, indicating strong growth potential. Domo’s consensus target is nearly double its current price of 6.1, suggesting considerable upside as well.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for AppLovin Corporation and Domo, Inc.:
Rating Comparison
AppLovin Corporation Rating
- Rating: B, considered very favorable by analysts.
- Discounted Cash Flow Score: Moderate at 3, indicating fair value.
- ROE Score: Very favorable at 5, showing efficient equity use.
- ROA Score: Very favorable at 5, reflecting strong asset use.
- Debt To Equity Score: Very unfavorable at 1, implying high debt.
- Overall Score: Moderate at 3, representing average financial health.
Domo, Inc. Rating
- Rating: C, also marked as very favorable by analysts.
- Discounted Cash Flow Score: Very unfavorable at 1, suggesting overvaluation.
- ROE Score: Very favorable at 5, equal efficiency in equity use.
- ROA Score: Very unfavorable at 1, indicating weak asset use.
- Debt To Equity Score: Very unfavorable at 1, also indicating high debt.
- Overall Score: Moderate at 2, slightly lower financial health.
Which one is the best rated?
AppLovin holds a higher overall rating (B) and better scores in discounted cash flow, ROA, and overall financial health compared to Domo, which has a lower rating (C) and weaker scores in most categories except ROE.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for each company:
AppLovin Corporation Scores
- Altman Z-Score: 30.7, indicating a safe zone status
- Piotroski Score: 7, classified as strong
Domo, Inc. Scores
- Altman Z-Score: -10.1, indicating distress zone
- Piotroski Score: 3, classified as very weak
Which company has the best scores?
AppLovin’s scores indicate strong financial stability and health with a very high Altman Z-Score and a solid Piotroski Score. Domo’s scores reflect financial distress and weak conditions based on the provided data.
Grades Comparison
Here is a comparison of recent grades from reputable firms for AppLovin Corporation and Domo, Inc.:
AppLovin Corporation Grades
This table summarizes recent grades from established financial institutions for AppLovin Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Overweight | 2026-01-13 |
| Wells Fargo | Maintain | Overweight | 2026-01-08 |
| Jefferies | Maintain | Buy | 2025-12-11 |
| Benchmark | Maintain | Buy | 2025-12-11 |
| Citigroup | Maintain | Buy | 2025-11-12 |
| Wells Fargo | Maintain | Overweight | 2025-11-07 |
| Goldman Sachs | Maintain | Neutral | 2025-11-07 |
| JP Morgan | Maintain | Neutral | 2025-11-06 |
| Wedbush | Maintain | Outperform | 2025-11-06 |
| Piper Sandler | Maintain | Overweight | 2025-11-06 |
AppLovin’s grades show a strong bias toward Buy and Overweight ratings, with several firms maintaining positive stances and a few neutral opinions.
Domo, Inc. Grades
The following table displays recent grades from recognized financial firms for Domo, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Neutral | 2025-12-05 |
| TD Cowen | Maintain | Buy | 2025-12-05 |
| Lake Street | Maintain | Hold | 2025-12-05 |
| DA Davidson | Maintain | Neutral | 2025-12-01 |
| JMP Securities | Maintain | Market Outperform | 2025-09-10 |
| DA Davidson | Maintain | Neutral | 2025-08-28 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-08-28 |
| TD Cowen | Upgrade | Buy | 2025-08-26 |
| JMP Securities | Maintain | Market Outperform | 2025-06-25 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-06-25 |
Domo’s ratings exhibit a mix of Neutral, Hold, and Buy, with some Market Outperform and Overweight ratings sustained over time.
Which company has the best grades?
AppLovin Corporation has received a larger number of Buy and Overweight ratings compared to Domo, which shows more neutral and mixed opinions. This suggests AppLovin may be viewed more favorably by analysts, potentially indicating stronger market confidence that could influence investor sentiment.
Strengths and Weaknesses
Below is a comparative analysis of the key strengths and weaknesses for AppLovin Corporation (APP) and Domo, Inc. (DOMO) based on their latest financial and operational data.
| Criterion | AppLovin Corporation (APP) | Domo, Inc. (DOMO) |
|---|---|---|
| Diversification | Strong diversification with multiple revenue streams: Advertising $3.22B and Apps $1.49B in 2024 | Mainly subscription-based ($286M) with smaller professional services ($31M) in 2025 |
| Profitability | High profitability: 33.55% net margin, ROIC 38.7%, ROE 144.96% (2024) | Mixed profitability: Negative net margin (-25.84%) but strong ROIC (194.73%) and ROE (46.23%) in 2025 |
| Innovation | Demonstrates robust innovation with a very favorable moat and growing ROIC | Also shows a very favorable moat with growing ROIC, indicating innovation in its niche |
| Global presence | Significant global footprint with dominant ad-tech platform and diversified app portfolio | More niche global presence focused on cloud-based subscription services |
| Market Share | Leading market share in mobile advertising and app monetization | Smaller market share focused on enterprise analytics and BI subscriptions |
Key takeaways: AppLovin shows strong diversification and profitability with a durable competitive advantage, making it a solid value creator. Domo, while innovative with a strong moat, faces challenges in profitability and scale, implying higher risk but potential for growth in its segment.
Risk Analysis
Below is a comparative table of key risks for AppLovin Corporation (APP) and Domo, Inc. (DOMO) based on the most recent data from 2025-2026:
| Metric | AppLovin Corporation (APP) | Domo, Inc. (DOMO) |
|---|---|---|
| Market Risk | High beta (2.5) indicates high volatility | Moderate beta (1.65) suggests moderate volatility |
| Debt level | High debt-to-assets at 60.59%, DE ratio 3.26 (unfavorable) | High debt-to-assets 63.23%, negative DE ratio (-0.76) but unstable |
| Regulatory Risk | Moderate, tech sector with data privacy concerns | Moderate, cloud software sector with compliance demands |
| Operational Risk | Scalable platform but high competition in ad tech | Operational challenges with weak liquidity (current ratio 0.56) |
| Environmental Risk | Low direct impact, software industry | Low direct impact, software industry |
| Geopolitical Risk | Exposure to US and international markets | Exposure to US and international markets |
In synthesis, both companies face significant market and debt-related risks. AppLovin shows high financial leverage and valuation concerns, while Domo struggles with liquidity and financial distress signals. AppLovin’s high beta means greater price swings, whereas Domo’s weak liquidity and negative Altman Z-score highlight higher bankruptcy risk. Investors should weigh these factors carefully, prioritizing risk management given the potential for volatility and financial instability.
Which Stock to Choose?
AppLovin Corporation (APP) shows a strong income evolution with a 43% revenue growth in 2024 and favorable profitability metrics, including a 33.55% net margin and a 145% return on equity. Despite elevated debt ratios, its overall rating is very favorable, supported by a very favorable moat and strong financial scores.
Domo, Inc. (DOMO) exhibits a less favorable income trend with negative net margin (-25.84%) and declining revenues in recent years. Its financial ratios are mixed, showing favorable return on invested capital but unfavorable liquidity and leverage metrics. The company’s rating is very favorable overall but with weak financial scores and signs of financial distress.
For investors prioritizing durable competitive advantage and strong profitability, APP might appear more favorable given its very favorable moat and income statement. Conversely, DOMO could be of interest to risk-tolerant investors focused on potential turnaround plays despite its weaker income and liquidity profiles.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of AppLovin Corporation and Domo, Inc. to enhance your investment decisions:
