In the rapidly evolving landscape of software applications, two companies stand out: Elastic N.V. (ESTC) and Domo, Inc. (DOMO). Both operate within the software application industry, yet they take distinct approaches to innovation and market presence. Elastic focuses on search and analytics solutions, while Domo emphasizes real-time business intelligence. This article will delve into their strategies, market positions, and financial health to help you determine which company may be the more compelling investment opportunity.
Table of contents
Company Overview
Elastic N.V. Overview
Elastic N.V. (ESTC) is a leading search technology company that specializes in delivering innovative solutions for data management and analysis. Headquartered in Mountain View, California, Elastic provides the Elastic Stack, a comprehensive suite of software products designed to ingest, store, and visualize data from diverse sources and formats. This product portfolio includes Elasticsearch, a powerful search and analytics engine, along with Kibana for data visualization, Beats for data shipping, and Logstash for data processing. Founded in 2012, Elastic serves a wide range of industries by enabling businesses to harness the power of their data, offering tools for application search, workplace search, and performance monitoring.
Domo, Inc. Overview
Domo, Inc. (DOMO) operates a robust cloud-based business intelligence platform that connects organizations from the executive level down to individual employees. Founded in 2010 and based in American Fork, Utah, Domo empowers users to access real-time data and insights through their smartphones, facilitating informed decision-making across all levels of the enterprise. The platform’s capabilities allow for seamless integration of data and systems, enhancing operational efficiency. Domo’s focus on delivering actionable insights aligns with the growing demand for data-driven strategies in today’s business landscape.
Key similarities and differences
Both Elastic N.V. and Domo, Inc. operate within the software application industry, focusing on data management and analysis. However, Elastic primarily concentrates on search and analytics solutions through its Elastic Stack, while Domo emphasizes business intelligence and real-time data connectivity for decision-makers. Their distinct approaches cater to different aspects of data use, showcasing their unique value propositions in the market.
Income Statement Comparison
In this section, I will provide a comparative income statement for Elastic N.V. and Domo, Inc., focusing on key metrics from the most recent fiscal year.
| Metric | Elastic N.V. (ESTC) | Domo, Inc. (DOMO) |
|---|---|---|
| Market Cap | 7.84B | 348.26M |
| Revenue | 1.48B | 317.04M |
| EBITDA | 6.05M | -50.05M |
| EBIT | -6.26M | -59.28M |
| Net Income | -108.11M | -81.94M |
| EPS | -1.04 | -2.13 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
Over the past year, Elastic N.V. has seen significant revenue growth to 1.48B, reflecting a recovery trend from previous years, although it still reported a net income loss of -108.11M. In contrast, Domo, Inc. maintained relatively stable revenue at 317.04M but also posted a net loss of -81.94M. Both companies struggle with profitability, as indicated by their negative EBIT and EBITDA figures. While Elastic’s margins show slight improvement, Domo’s performance indicates ongoing challenges in controlling expenses, particularly in R&D and marketing. Overall, both companies require careful monitoring as they navigate their path to profitability amidst competitive pressures in the software application sector.
Financial Ratios Comparison
Below is a comparative table of the most recent financial metrics for Elastic N.V. (ESTC) and Domo, Inc. (DOMO).
| Metric | [Elastic N.V.] | [Domo, Inc.] |
|---|---|---|
| ROE | -11.66% | 46.23% |
| ROIC | -11.80% | 197.65% |
| P/E | -82.65 | -3.98 |
| P/B | 9.64 | -1.84 |
| Current Ratio | 1.92 | 0.56 |
| Quick Ratio | 1.92 | 0.56 |
| D/E | 0.64 | -0.76 |
| Debt-to-Assets | 22.95% | 63.23% |
| Interest Coverage | -2.17 | 0.00 |
| Asset Turnover | 0.57 | 1.48 |
| Fixed Asset Turnover | 51.28 | 8.17 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of Financial Ratios
The financial metrics reveal contrasting performance between Elastic and Domo. While Domo shows strong returns on equity (ROE) and invested capital (ROIC), Elastic struggles with negative returns. Domo’s asset turnover and fixed asset turnover suggest efficient use of its resources. However, both companies have zero dividend payouts, indicating potential reinvestment needs. Elastic’s significant negative interest coverage raises concerns about its ability to service debt effectively.
Dividend and Shareholder Returns
Neither Elastic N.V. (ESTC) nor Domo, Inc. (DOMO) pays dividends, reflecting a common strategy among growth-focused companies. Both firms are in phases of negative net income, prioritizing reinvestment into operations and R&D. While they do not distribute cash to shareholders, both companies have engaged in share buyback programs, which can enhance shareholder value by reducing share count. Overall, this approach may support long-term growth, although it carries risks related to sustainability and financial health.
Strategic Positioning
In the competitive landscape of the software application industry, Elastic N.V. (ESTC) commands a significant market share with its Elastic Stack, a robust suite of solutions for data management and analytics. The company’s advanced technology positions it favorably against rivals like Domo, Inc. (DOMO), which focuses on cloud-based business intelligence. However, Domo faces intense competitive pressure and has experienced substantial volatility, highlighting the challenges posed by technological disruption in the sector. As I analyze these companies, understanding their strategic positioning is crucial for making informed investment decisions.
Stock Comparison
In this section, I will provide an analysis of the stock price movements for Elastic N.V. (ESTC) and Domo, Inc. (DOMO) over the past year, focusing on key price dynamics and trends.
Trend Analysis
Elastic N.V. (ESTC) Over the past year, ESTC has experienced a significant price change of -33.58%. This bearish trend indicates a deceleration in price movement, with notable highs of 130.39 and lows of 70.04. The standard deviation of 15.04 suggests moderate volatility in the stock’s price.
In the recent period from September 21, 2025, to December 7, 2025, the stock has further declined by -16.63%, with a standard deviation of 7.31. This trend continues to reflect a bearish sentiment accompanied by a trend slope of -1.26.
Domo, Inc. (DOMO) DOMO has also seen a decline in its stock price, with an overall change of -6.32% over the past year, classifying it within a bearish trend. The acceleration status indicates deceleration, with a range from a high of 18.06 to a low of 6.62. The standard deviation of 2.99 indicates lower volatility than ESTC.
In the recent analysis from September 21, 2025, to December 7, 2025, DOMO’s stock has taken a sharp downturn of -51.34%, with a standard deviation of 2.3, suggesting a more volatile recent performance. The trend slope of -0.6 indicates a continuing bearish momentum.
Analyst Opinions
Recent analyst recommendations for Elastic N.V. (ESTC) indicate a cautious stance, with a rating of C- reflecting concerns about its financial metrics, particularly in return on equity and asset utilization. Analysts suggest a hold position. In contrast, Domo, Inc. (DOMO) has received a more favorable C rating, primarily due to a strong return on equity, although other areas remain weak. The consensus for both companies leans toward a hold for 2025, as analysts weigh potential growth against existing financial challenges.
Stock Grades
I have gathered reliable stock grade data for two companies: Elastic N.V. (ESTC) and Domo, Inc. (DOMO). Below are the details regarding their recent ratings.
Elastic N.V. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | maintain | Buy | 2025-11-24 |
| Cantor Fitzgerald | maintain | Neutral | 2025-11-21 |
| Morgan Stanley | maintain | Overweight | 2025-11-21 |
| Stifel | maintain | Buy | 2025-11-21 |
| DA Davidson | maintain | Neutral | 2025-11-21 |
| UBS | maintain | Buy | 2025-11-21 |
| Rosenblatt | maintain | Buy | 2025-11-21 |
| JP Morgan | maintain | Overweight | 2025-11-21 |
| Guggenheim | maintain | Buy | 2025-11-21 |
| B of A Securities | maintain | Neutral | 2025-11-21 |
Domo, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| TD Cowen | maintain | Buy | 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 |
| Cantor Fitzgerald | maintain | Overweight | 2025-05-22 |
| Lake Street | maintain | Hold | 2025-05-22 |
In summary, both companies show a consistent trend of maintaining their grades, with Elastic N.V. receiving a mix of “Buy” and “Neutral” ratings, while Domo, Inc. maintains a positive outlook with several “Buy” and “Market Outperform” recommendations. This suggests a stable sentiment among analysts, indicating potential resilience in their respective market positions.
Target Prices
The consensus target prices for the companies under analysis provide useful insights for potential investors.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Elastic N.V. | 134 | 76 | 108 |
| Domo, Inc. | 50 | 10 | 22.5 |
For Elastic N.V. (ESTC), the current price of 74.35 suggests a significant upside potential based on the consensus target. In contrast, Domo, Inc. (DOMO) is trading at 8.79, which also indicates room for growth compared to its target consensus of 22.5. Overall, these targets reflect analysts’ optimistic outlooks for both companies.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of two companies, Elastic N.V. (ESTC) and Domo, Inc. (DOMO), based on recent data.
| Criterion | Elastic N.V. (ESTC) | Domo, Inc. (DOMO) |
|---|---|---|
| Diversification | Moderate | Low |
| Profitability | Negative margins | Negative margins |
| Innovation | High | Moderate |
| Global presence | Strong | Moderate |
| Market Share | Growing | Small |
| Debt level | Moderate (0.23) | High (0.63) |
Key takeaways indicate that while Elastic N.V. shows promising innovation and global presence, it suffers from profitability issues. Conversely, Domo, Inc. faces high debt levels and limited market share but maintains some innovation potential.
Risk Analysis
The following table summarizes the key risks associated with Elastic N.V. and Domo, Inc. as of 2025.
| Metric | Elastic N.V. | Domo, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | High | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | High |
Both companies face significant operational risks, particularly due to their reliance on technology and market volatility. Domo’s high market risk is notable, especially considering its substantial recent losses and fluctuating share performance.
Which one to choose?
In evaluating Elastic N.V. (ESTC) and Domo, Inc. (DOMO), both companies exhibit bearish trends in stock performance, with ESTC down 33.58% and DOMO down 6.32%. ESTC has a market cap of approximately 8.94B USD, with an unfavorable net profit margin of -7.29% and a C- rating. In contrast, DOMO, with a market cap of 0.33B USD, has a slightly better C rating but also reports negative profitability with a net margin of -25.9%. Analysts remain cautious, noting both companies face competitive market pressures and operational challenges.
Investors seeking growth may lean towards ESTC, given its larger scale, while those prioritizing stability might opt for DOMO due to its relatively better performance metrics and lower market volatility.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Elastic N.V. and Domo, Inc. to enhance your investment decisions:
