In the fast-evolving world of technology, choosing the right company to invest in can make all the difference. Today, I will compare Snowflake Inc. (SNOW) and Domo, Inc. (DOMO), both operating in the Software – Application industry. While they share market overlap in cloud-based solutions and business intelligence, their innovation strategies and market positions diverge significantly. Join me as we explore which of these companies presents a more compelling investment opportunity for your portfolio.
Table of contents
Company Overview
Snowflake Inc. Overview
Snowflake Inc. is a leading provider of a cloud-based data platform that allows organizations to consolidate their data into a single source of truth. Founded in 2012 and headquartered in Bozeman, Montana, Snowflake’s Data Cloud platform enables businesses across various industries to derive meaningful insights, build data-driven applications, and share data seamlessly. The company went public in September 2020 and has since garnered significant attention for its innovative approach in the software application sector. With a market capitalization of approximately $83.1B, Snowflake is positioned as a key player in the rapidly growing data analytics and cloud computing space.
Domo, Inc. Overview
Domo, Inc. operates a cloud-based business intelligence platform that connects all levels of an organization, from executives to frontline employees. Founded in 2010 and based in American Fork, Utah, Domo provides real-time access to data and insights, enabling businesses to make informed decisions directly from their smartphones. The company, which went public in June 2018, has a market capitalization of about $455M. Domo focuses on empowering organizations to manage their operations efficiently and is positioned in the competitive landscape of software applications, albeit at a smaller scale compared to Snowflake.
Key Similarities and Differences
Both Snowflake and Domo operate within the software application industry, focusing on data management and analytics. However, Snowflake emphasizes data consolidation for larger enterprises, while Domo targets providing real-time insights to all organizational levels, catering to a broader operational approach. Snowflake’s larger market cap and technological sophistication differentiate it from Domo’s more user-centric platform.
Income Statement Comparison
The following table provides a comparison of key income metrics for Snowflake Inc. and Domo, Inc. for the fiscal year 2025, highlighting their financial performance.
| Metric | Snowflake Inc. | Domo, Inc. |
|---|---|---|
| Revenue | 3.63B | 317M |
| EBITDA | -1.10B | -50M |
| EBIT | -1.28B | -59M |
| Net Income | -1.29B | -82M |
| EPS | -3.86 | -2.13 |
Interpretation of Income Statement
In 2025, Snowflake reported significant revenue growth to 3.63B, up from 2.81B in 2024, while Domo saw slight stability with a revenue of 317M compared to 319M in the previous year. Despite the revenue increase, Snowflake’s net income remained negative at -1.29B, reflecting ongoing challenges in managing costs, particularly in R&D and marketing. Domo also faced losses, but with a smaller scale of operations. Both companies exhibited negative margins, indicating the need for improved cost management and strategic adjustments to enhance profitability moving forward.
Financial Ratios Comparison
Below is a comparative table showing the most recent revenue and financial ratios for Snowflake Inc. (SNOW) and Domo, Inc. (DOMO).
| Metric | SNOW | DOMO |
|---|---|---|
| ROE | -42.86% | 46.23% |
| ROIC | -25.32% | 197.65% |
| P/E | -46.97 | -3.98 |
| P/B | 20.13 | -1.84 |
| Current Ratio | 1.75 | 0.56 |
| Quick Ratio | 1.75 | 0.56 |
| D/E | 0.90 | -0.76 |
| Debt-to-Assets | 0.30 | 0.63 |
| Interest Coverage | -527.73 | -2.99 |
| Asset Turnover | 0.40 | 1.48 |
| Fixed Asset Turnover | 5.53 | 8.17 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
Snowflake Inc. shows significantly negative returns on equity and invested capital, indicating financial struggles. Its high P/B ratio suggests overvaluation relative to its book value. Conversely, Domo displays strong ROE and ROIC, suggesting effective capital use despite low liquidity ratios. However, both companies show weak interest coverage, raising concerns about their ability to manage debt effectively. As an investor, I would approach these stocks with caution, emphasizing risk management.
Dividend and Shareholder Returns
Neither Snowflake Inc. (SNOW) nor Domo, Inc. (DOMO) currently pays dividends, as both companies are in a high growth phase, prioritizing reinvestment and research over shareholder payouts. This strategy aligns with long-term value creation, allowing them to invest in innovation and market expansion. Additionally, both companies engage in share buybacks, which can enhance shareholder value by reducing the number of outstanding shares. Overall, the absence of dividends is consistent with their growth-oriented focus, potentially supporting sustainable long-term value for shareholders.
Strategic Positioning
Snowflake Inc. (SNOW) currently dominates the cloud-based data platform market with a significant market cap of 83.1B and robust technological capabilities that enable organizations to leverage data insights effectively. In contrast, Domo, Inc. (DOMO) operates in a similar space but holds a much smaller market cap of 455M, facing competitive pressure from larger players like Snowflake. The rapid pace of technological disruption in this sector necessitates continuous innovation and adaptation to maintain relevance.
Stock Comparison
Over the past year, Snowflake Inc. (SNOW) and Domo, Inc. (DOMO) have exhibited significant price movements, reflecting both companies’ evolving trading dynamics and market conditions.
Trend Analysis
Snowflake Inc. (SNOW) has demonstrated a bullish trend with a price increase of 32.09% over the past year. Notably, the stock has shown acceleration in this trend, with a recent price change of 12.96% from September 14, 2025, to November 30, 2025. The highest price recorded was 274.88, while the lowest was 108.56. The standard deviation of 42.06 indicates a considerable level of volatility in its trading activity, underscoring the potential risks involved.
Domo, Inc. (DOMO) also reflects a bullish trend overall, with a 20.04% price increase over the past year. However, the recent trend from September 14, 2025, to November 30, 2025, has been bearish, showing a decline of 32.53%. This decline occurs despite the overall bullish trend, illustrating a deceleration in momentum, with a standard deviation of 2.99 indicating lower volatility compared to SNOW. The stock has experienced notable price fluctuations, with a high of 18.06 and a low of 6.62.
In conclusion, while both companies have shown positive trends over the longer term, the recent performance of DOMO raises caution for investors, suggesting a need for careful risk management.
Analyst Opinions
Recent analyst recommendations for Snowflake Inc. (SNOW) indicate a cautious stance, with a rating of C- and an overall score of 1, suggesting a hold position due to concerns about its financial metrics. In contrast, Domo, Inc. (DOMO) received a slightly better rating of C, with a score of 2, primarily driven by strong return on equity. Analysts recommend a hold for both companies this year, reflecting a consensus that neither stock is a strong buy at present.
Stock Grades
In this section, I will present the stock grades for Snowflake Inc. and Domo, Inc., based on reliable assessments from recognized grading companies.
Snowflake Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | maintain | Outperform | 2025-11-17 |
| B of A Securities | maintain | Buy | 2025-11-17 |
| BTIG | maintain | Buy | 2025-11-12 |
| JMP Securities | maintain | Market Outperform | 2025-10-28 |
| Wedbush | maintain | Outperform | 2025-10-20 |
| Rosenblatt | maintain | Buy | 2025-10-17 |
| UBS | maintain | Buy | 2025-10-08 |
| Macquarie | maintain | Neutral | 2025-08-28 |
| Scotiabank | maintain | Sector Outperform | 2025-08-28 |
| Mizuho | maintain | Outperform | 2025-08-28 |
Domo, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JMP Securities | maintain | Market Outperform | 2025-09-10 |
| Cantor Fitzgerald | maintain | Overweight | 2025-08-28 |
| DA Davidson | maintain | Neutral | 2025-08-28 |
| TD Cowen | upgrade | Buy | 2025-08-26 |
| Cantor Fitzgerald | maintain | Overweight | 2025-06-25 |
| JMP Securities | maintain | Market Outperform | 2025-06-25 |
| DA Davidson | maintain | Neutral | 2025-05-22 |
| Lake Street | maintain | Hold | 2025-05-22 |
| Cantor Fitzgerald | maintain | Overweight | 2025-05-22 |
| JMP Securities | maintain | Market Outperform | 2025-05-22 |
Overall, the grades for both Snowflake Inc. and Domo, Inc. indicate a consistent level of confidence from analysts, with many maintaining their positive ratings. Notably, Domo has seen an upgrade to “Buy,” reflecting a potentially improving outlook.
Target Prices
The latest target price data indicates strong consensus among analysts for both companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Snowflake Inc. | 325 | 221 | 276.46 |
| Domo, Inc. | 50 | 15 | 24.5 |
For Snowflake Inc. (SNOW), the consensus target price of 276.46 suggests a potential upside from its current price of 249.69. Meanwhile, Domo, Inc. (DOMO) has a target consensus of 24.5, indicating significant growth potential from its current price of 11.48. Overall, analysts appear optimistic about both stocks.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Snowflake Inc. (SNOW) and Domo, Inc. (DOMO) based on recent data.
| Criterion | Snowflake Inc. (SNOW) | Domo, Inc. (DOMO) |
|---|---|---|
| Diversification | Moderate | Low |
| Profitability | Negative margins | Negative margins |
| Innovation | High | Moderate |
| Global presence | Strong | Moderate |
| Market Share | High | Low |
| Debt level | Moderate | High |
Key takeaways indicate that while Snowflake demonstrates strong global presence and innovation, Domo struggles with profitability and high debt levels. Investors should weigh these factors carefully before making investment decisions.
Risk Analysis
In the following table, I outline the key risks associated with two companies, Snowflake Inc. and Domo, Inc., to help you assess potential investments.
| Metric | Snowflake Inc. | Domo, Inc. |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Moderate | High |
| Operational Risk | High | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Low | Moderate |
Both companies face significant operational risks, particularly due to their reliance on technology infrastructure and data management. Snowflake has a moderate market risk, while Domo’s risks are exacerbated by high volatility in market demand and regulatory scrutiny.
Which one to choose?
In comparing Snowflake Inc. (SNOW) and Domo, Inc. (DOMO), it’s clear that both companies operate in the data analytics space, yet their financials present distinct profiles. SNOW shows a higher gross profit margin at 66.5%, but struggles with a net loss margin of -35.5%. Conversely, DOMO has a gross profit margin of 74.5% and a slightly lower net loss margin at -25.8%, suggesting better cost management.
Analyst ratings indicate a C- for SNOW and a C for DOMO, with price targets reflecting more stabilization in DOMO’s stock trend despite recent volatility. For growth-oriented investors, SNOW’s bullish trend may appeal, while those preferring stability may lean towards DOMO given its stronger gross margins and lower net loss ratio.
Both companies face risks related to competition and reliance on market demand, making caution essential.
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 Snowflake Inc. and Domo, Inc. to enhance your investment decisions:
