In the rapidly evolving landscape of cloud-based software solutions, Snowflake Inc. and Domo, Inc. emerge as two noteworthy players within the same industry. Both companies focus on application software, but their innovative strategies and market approaches differ significantly. Snowflake has carved a niche with its robust data platform, while Domo emphasizes real-time business intelligence. As we delve into this comparison, I aim to help you identify which company holds more potential for investment.
Table of contents
Company Overview
Snowflake Inc. Overview
Snowflake Inc. is a leader in cloud-based data platforms, providing a unique Data Cloud that consolidates data into a single source of truth. This enables organizations to drive meaningful insights and build data-driven applications. Founded in 2012 and headquartered in Bozeman, Montana, Snowflake serves a diverse clientele across various industries. With a strong market capitalization of approximately $76.3B, it has established itself as a pivotal player in the software application industry. The company has seen its stock price fluctuate between $120.1 to $280.67, and its innovative solutions are tailored for organizations looking to leverage the power of data in real-time.
Domo, Inc. Overview
Domo, Inc. operates a cloud-based business intelligence platform that connects executives to frontline employees, ensuring real-time access to critical data and insights. Founded in 2010 and based in American Fork, Utah, Domo has positioned itself as a vital tool for organizations aiming to manage their business operations seamlessly from smartphones. With a market cap of around $346M and a stock price ranging from $6.01 to $18.49, Domo focuses on providing a user-friendly interface that enhances decision-making processes across various levels of an organization.
Key similarities and differences
Both Snowflake and Domo operate in the software application industry and provide cloud-based solutions for data management and insights. However, Snowflake primarily focuses on data consolidation and analytics, while Domo emphasizes business intelligence and real-time accessibility for decision-makers. Their distinct approaches cater to different user needs within the data landscape.
Income Statement Comparison
The following table provides a comparison of the latest income statements for Snowflake Inc. and Domo, Inc., allowing us to analyze their financial performance in the most recent fiscal year.
| Metric | Snowflake Inc. | Domo, Inc. |
|---|---|---|
| Market Cap | 76.26B | 0.35B |
| Revenue | 3.63B | 0.32B |
| EBITDA | -1.10B | -0.05B |
| EBIT | -1.28B | -0.06B |
| Net Income | -1.29B | -0.08B |
| EPS | -3.86 | -2.13 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
In the 2025 fiscal year, Snowflake’s revenue increased to 3.63B, reflecting a strong growth trajectory compared to previous years, while Domo maintained stable revenue around 0.32B. However, both companies reported significant net losses, indicating ongoing challenges in profitability. Snowflake’s EPS of -3.86 suggests that while revenue growth is promising, operational costs, particularly in R&D and marketing, are drastically impacting margins. Domo’s performance also reflects losses, though at a lesser scale, indicating a more manageable cash burn relative to its size.
Financial Ratios Comparison
Below is a comparative table showing the most recent revenue and key 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 | 29.72% | 63.23% |
| 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
The financial ratios reveal contrasting positions for SNOW and DOMO. SNOW is facing significant challenges, evidenced by negative ROE and ROIC, suggesting inefficiencies in producing returns for shareholders. Conversely, DOMO shows strong metrics, particularly with a solid ROE and ROIC, indicating effective capital utilization. However, DOMO’s high debt levels raise concerns about financial stability. Overall, while DOMO appears stronger, both companies face distinct risks that investors should consider.
Dividend and Shareholder Returns
Both Snowflake Inc. (SNOW) and Domo, Inc. (DOMO) do not pay dividends, reflecting their focus on reinvestment for growth rather than immediate shareholder payouts. This strategy is typical for companies in high-growth phases, as they prioritize funding research and development or acquisitions. However, both companies engage in share buybacks, which can signal confidence in their own stock value. Ultimately, their current approaches may support long-term value creation, but caution is warranted due to their negative net income and high operational risks.
Strategic Positioning
In the cloud data platform market, Snowflake Inc. (SNOW) holds a significant market share with a market cap of $76.3B, positioning itself as a leader in data management solutions. Its competitive edge lies in its ability to provide a unified platform that fosters data-driven insights. In contrast, Domo, Inc. (DOMO), with a market cap of $346M, faces intense competition and is under pressure to innovate its business intelligence offerings amidst rapid technological disruption. Both companies must navigate these competitive landscapes effectively.
Stock Comparison
In this section, I will analyze the stock price movements of Snowflake Inc. (SNOW) and Domo, Inc. (DOMO) over the past year, focusing on key price dynamics and trading behaviors that have shaped their recent performance.
Trend Analysis
Snowflake Inc. (SNOW) Over the past year, SNOW has experienced a price change of +19.05%, indicating a bullish trend. The stock reached a notable high of 274.88 and a low of 108.56, with the trend showing acceleration, supported by a standard deviation of 42.39, suggesting significant volatility. Recently, however, the stock saw a slight decline of -1.21% from September 21, 2025, to December 7, 2025, although it maintains its overall bullish outlook.
Domo, Inc. (DOMO) Conversely, DOMO has faced a challenging year, with a price change of -6.8%, establishing a bearish trend. The stock’s price fluctuated between a high of 18.06 and a low of 6.62. The trend has shown deceleration, with a standard deviation of 2.99 indicating lower volatility compared to SNOW. In the recent period from September 21, 2025, to December 7, 2025, DOMO’s stock plummeted by -51.59%, reinforcing its bearish stance.
In summary, while SNOW exhibits a strong positive momentum, DOMO’s performance has been significantly declining, making it crucial for investors to weigh these trends in their decision-making processes.
Analyst Opinions
Recent analyst recommendations indicate a cautious stance on both Snowflake Inc. (SNOW) and Domo, Inc. (DOMO). Analysts have rated SNOW with a “C-” and highlighted concerns regarding its overall performance metrics, particularly in return on equity and debt-to-equity ratios. Conversely, DOMO received a “C” rating, with stronger return on equity but similar weaknesses in other areas. Overall, the consensus leans towards a “hold” for both companies this year, reflecting a wait-and-see approach amidst ongoing market uncertainties.
Stock Grades
In this section, I’ll present the latest stock ratings for Snowflake Inc. and Domo, Inc., providing insights into their current investment outlooks.
Snowflake Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Stifel | maintain | Buy | 2025-12-04 |
| DA Davidson | maintain | Buy | 2025-12-04 |
| Morgan Stanley | maintain | Overweight | 2025-12-04 |
| Deutsche Bank | maintain | Buy | 2025-12-04 |
| Cantor Fitzgerald | maintain | Overweight | 2025-12-04 |
| Baird | maintain | Outperform | 2025-12-04 |
| BTIG | maintain | Buy | 2025-12-04 |
| Keybanc | maintain | Overweight | 2025-12-04 |
| Scotiabank | maintain | Sector Outperform | 2025-12-04 |
| Rosenblatt | maintain | Buy | 2025-12-04 |
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 |
The overall trend in stock grades for Snowflake Inc. indicates a strong endorsement from multiple analysts, consistently maintaining favorable ratings. Conversely, while Domo, Inc. has a mix of ratings, it also shows positive momentum with upgrades and steady endorsements, particularly from TD Cowen.
Target Prices
The consensus target prices from analysts provide insights into the expected performance of the stocks.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Snowflake Inc. | 325 | 230 | 282.25 |
| Domo, Inc. | 50 | 10 | 22.5 |
For Snowflake Inc., the target consensus of 282.25 suggests a significant upside potential compared to its current price of 227.81, while Domo, Inc.’s consensus of 22.5 reflects a more modest outlook given its current price of 8.74.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Snowflake Inc. (SNOW) and Domo, Inc. (DOMO) based on the most recent data.
| Criterion | Snowflake Inc. | Domo, Inc. |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Negative | Negative |
| Innovation | Strong | Moderate |
| Global presence | Extensive | Limited |
| Market Share | Growing | Small |
| Debt level | Moderate | High |
Key takeaways indicate that while Snowflake showcases strong innovation and global presence, it struggles with profitability. In contrast, Domo faces significant challenges with high debt levels and limited market share, despite moderate innovation.
Risk Analysis
The following table outlines the key risks associated with Snowflake Inc. and Domo, Inc. as of 2025.
| Metric | Snowflake Inc. | Domo, Inc. |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | High |
| Operational Risk | High | Moderate |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant operational and market risks, particularly as they navigate a competitive technology landscape. Snowflake’s high valuation and Domo’s regulatory challenges make them vulnerable to market shifts and regulatory scrutiny, which could have substantial impacts on their futures.
Which one to choose?
In comparing Snowflake Inc. (SNOW) and Domo, Inc. (DOMO), both companies show distinct financial profiles. SNOW has a higher gross profit margin of 66.5% compared to DOMO’s 74.5%, but both face negative profit margins and significant operational losses. SNOW’s recent stock trend is bullish, with a 19% price increase, while DOMO is experiencing a bearish trend with a 6.8% decline. Analysts rate SNOW with a C- and DOMO with a C, indicating marginally better performance expectations for Domo.
For growth-oriented investors, SNOW presents a more favorable long-term potential despite its higher valuation metrics, whereas those valuing stability may prefer DOMO due to its lower market cap and operational efficiency. Both companies, however, face risks related to competition 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 Snowflake Inc. and Domo, Inc. to enhance your investment decisions:
