In the rapidly evolving tech landscape, understanding the competitive dynamics between key players is crucial for investors. Today, I am comparing Informatica Inc. (INFA) and Domo, Inc. (DOMO), two companies that operate within the software sector but focus on different aspects of data management and business intelligence. Both firms are innovating at the intersection of data and technology, with unique strategies that cater to a diverse clientele. Join me as we explore which of these companies presents the most compelling investment opportunity.
Table of contents
Company Overview
Informatica Inc. Overview
Informatica Inc. is a leading provider of data management solutions, leveraging artificial intelligence to unify and manage data across complex, multi-cloud environments. Established in 1993 and headquartered in Redwood City, California, Informatica’s platform offers a comprehensive suite of tools for data integration, quality, governance, and master data management. With a market capitalization of approximately $7.5B and over 5,200 employees, the company is well-positioned in the software infrastructure sector. Its mission is to empower organizations to make data-driven decisions by ensuring they have access to accurate and insightful data.
Domo, Inc. Overview
Domo, Inc. operates a cloud-based business intelligence platform that connects employees at all levels of an organization to real-time data and insights. Founded in 2010 and based in American Fork, Utah, Domo focuses on enhancing the decision-making process through data accessibility on mobile devices. With a market cap of around $347M and a workforce of 888, Domo aims to simplify the complexities of data management and reporting. The company’s mission is to democratize data, making it a core part of everyday business operations for its users.
Key similarities and differences
Both companies operate within the technology sector but focus on different aspects of data management. Informatica emphasizes comprehensive data infrastructure and governance solutions, while Domo prioritizes real-time business intelligence and accessibility for end-users. Their approaches reflect a broader trend in data management, with Informatica catering to enterprise-scale needs and Domo targeting organizational agility.
Income Statement Comparison
The following table provides a comparative view of the most recent income statements for Informatica Inc. and Domo, Inc., highlighting key financial metrics.
| Metric | Informatica Inc. (INFA) | Domo, Inc. (DOMO) |
|---|---|---|
| Market Cap | 7.54B | 347.08M |
| Revenue | 1.64B | 317.04M |
| EBITDA | 338.52M | -50.05M |
| EBIT | 199.23M | -59.28M |
| Net Income | 9.93M | -81.94M |
| EPS | 0.0329 | -2.13 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
In the most recent fiscal year, Informatica showcased a revenue increase to 1.64B, reflecting a solid growth trajectory, while Domo’s revenue remained relatively stable at 317.04M. However, Domo continues to struggle with profitability, posting a net loss of 81.94M. Informatica’s EBITDA margin has improved, indicating better operational efficiency, whereas Domo’s negative margins suggest ongoing financial challenges. Overall, Informatica appears to be on a more favorable path, whereas Domo’s performance indicates a need for strategic adjustments to enhance profitability.
Financial Ratios Comparison
In this section, I will present a comparative overview of key financial metrics for Informatica Inc. (INFA) and Domo, Inc. (DOMO) based on the most recent data available.
| Metric | INFA | DOMO |
|---|---|---|
| ROE | 0.43% | -0.38 |
| ROIC | 0.56% | 1.98 |
| P/E | -66.48 | -5.01 |
| P/B | 3.39 | -3.61 |
| Current Ratio | 1.82 | 0.56 |
| Quick Ratio | 1.82 | 0.56 |
| D/E | 0.81 | -0.76 |
| Debt-to-Assets | 0.35 | 0.63 |
| Interest Coverage | 0.87 | – |
| Asset Turnover | 0.31 | 1.48 |
| Fixed Asset Turnover | 8.75 | 8.17 |
| Payout Ratio | 0.001 | 0 |
| Dividend Yield | 0.00015% | 0 |
Interpretation of Financial Ratios
In examining these ratios, Informatica (INFA) displays a stronger position in profitability metrics like Return on Equity (ROE) and Return on Invested Capital (ROIC). However, its high P/E ratio suggests the market is pricing in high growth expectations, which may not be justified given its negative earnings in previous years. Domo (DOMO) shows poor liquidity with a current ratio below 1, indicating potential short-term financial struggles. The negative values in several key metrics for Domo raise concerns about its financial health, highlighting the need for cautious investment considerations.
Dividend and Shareholder Returns
Informatica Inc. (INFA) has a minimal dividend payout ratio of 0.0012, indicating a focus on retaining earnings for growth. The annual dividend yield is nearly negligible, and while the company engages in share buybacks, caution is warranted due to its negative net income. Conversely, Domo, Inc. (DOMO) does not pay dividends, prioritizing reinvestment into its operations during a high-growth phase. Both companies’ approaches to shareholder returns suggest a strategy focused on long-term value creation, albeit with inherent risks associated with their financial performance.
Strategic Positioning
Informatica Inc. (INFA) commands a significant position in the Software – Infrastructure sector, boasting a market cap of $7.54B. Its advanced AI-powered data management solutions give it a competitive edge against peers like Domo, Inc. (DOMO), which has a market cap of $347M in the Software – Application industry. The competitive pressure is palpable, especially as technological disruptions reshape data management landscapes, necessitating ongoing innovation and adaptation.
Stock Comparison
In the past year, both Informatica Inc. (INFA) and Domo, Inc. (DOMO) have experienced significant price movements, reflecting broader market dynamics and investor sentiment. The following chart illustrates the weekly stock price trends for both companies, highlighting their key trading patterns.
Trend Analysis
For Informatica Inc. (INFA), the overall percentage change over the past year is -12.68%, indicating a bearish trend. The stock has shown notable volatility, with a standard deviation of 4.46. The highest price during this period was 38.48, while the lowest was 16.67. The trend is characterized by acceleration, suggesting that the downward movement is becoming more pronounced.
In contrast, Domo, Inc. (DOMO) has seen a percentage change of -6.32% over the same period, also indicating a bearish trend. The volatility is somewhat lower, with a standard deviation of 2.99. The highest price recorded was 18.06, and the lowest was 6.62. However, the trend is currently decelerating, which may signal a slowing down of the downward movement.
In summary, both stocks are experiencing bearish trends, with INFA showing greater acceleration in price decline compared to DOMO’s deceleration.
Analyst Opinions
Recent analyst recommendations for Domo, Inc. (DOMO) indicate a cautious stance, with a consensus rating of “C.” Analysts highlight concerns over its low discounted cash flow and poor performance in key metrics like return on equity and debt-to-equity ratio. Despite a solid return on assets, the overall sentiment suggests limited growth potential for the current year. Therefore, I recommend exercising caution with DOMO, particularly given the current consensus leaning towards a “hold” position. No significant recommendations have been made for Informatica Inc. (INFA) recently.
Stock Grades
In this section, I will present the latest stock grades for Informatica Inc. (INFA) and Domo, Inc. (DOMO), based on reliable grading data from recognized financial institutions.
Informatica Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Guggenheim | downgrade | Neutral | 2025-08-07 |
| UBS | maintain | Neutral | 2025-08-07 |
| Baird | maintain | Neutral | 2025-05-28 |
| JP Morgan | downgrade | Neutral | 2025-05-28 |
| RBC Capital | maintain | Sector Perform | 2025-05-28 |
| Wolfe Research | downgrade | Peer Perform | 2025-05-28 |
| Wells Fargo | maintain | Equal Weight | 2025-05-28 |
| Truist Securities | downgrade | Hold | 2025-05-28 |
| RBC Capital | maintain | Sector Perform | 2025-05-27 |
| UBS | maintain | Neutral | 2025-05-16 |
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 |
Overall, the grading trend for INFA indicates a shift towards more cautious ratings, with several downgrades leading to a more neutral outlook. In contrast, DOMO maintains a relatively strong position with mostly stable grades and even some upgrades, reflecting a positive sentiment among analysts.
Target Prices
The target price consensus for the selected companies shows a mix of expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Informatica Inc. | 27 | 27 | 27 |
| Domo, Inc. | 50 | 10 | 22.5 |
Informatica Inc. has a strong consensus target price of $27, aligning with its current price of $24.79. In contrast, Domo, Inc. has a broader target range, with a consensus of $22.5 compared to its current price of $8.76, indicating potential upside based on analyst expectations.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Informatica Inc. (INFA) and Domo, Inc. (DOMO) based on the most recent financial data.
| Criterion | Informatica Inc. (INFA) | Domo, Inc. (DOMO) |
|---|---|---|
| Diversification | Moderate | Low |
| Profitability | Low (Net Margin: 0.61%) | Negative |
| Innovation | High | Moderate |
| Global presence | Strong | Moderate |
| Market Share | Growing | Declining |
| Debt level | Moderate (Debt/Equity: 0.81) | High (Debt/Equity: -0.76) |
Key takeaways: Informatica shows stronger innovation and global presence, while Domo struggles with profitability and high debt levels. Investors should carefully evaluate these aspects when considering investments in either company.
Risk Analysis
In the following table, I outline the key risks associated with Informatica Inc. (INFA) and Domo, Inc. (DOMO) to provide a clearer picture of their current risk landscape.
| Metric | Informatica Inc. | Domo, Inc. |
|---|---|---|
| Market Risk | Medium | High |
| Regulatory Risk | Low | Medium |
| Operational Risk | Medium | High |
| Environmental Risk | Low | Medium |
| Geopolitical Risk | Low | Medium |
Both companies face substantial operational and market risks, particularly Domo, which has recently experienced significant volatility in its stock price, dropping 24% in a single quarter. This highlights the need for careful risk management when considering investments in these firms.
Which one to choose?
When comparing Informatica Inc. (INFA) and Domo, Inc. (DOMO), the fundamentals suggest a cautious approach. INFA demonstrates a robust gross profit margin of 80% and a revenue of $1.64B, but it faces significant profitability challenges with a net income of just $9.93M and a high P/E ratio of 788. Conversely, DOMO, with a lower revenue of $317M, struggles with a net loss of $81.93M and a bearish stock trend, reflected in a recent price decline of 51.34%. Analyst ratings favor DOMO with a grade of C, indicating some potential upside, while INFA lacks recent ratings.
For growth-focused investors, INFA might seem more attractive due to its higher revenue and margins. However, those looking for stability should consider the risks surrounding both companies, including profitability and market dependence.
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 Informatica Inc. and Domo, Inc. to enhance your investment decisions:
