In the fast-evolving world of cloud-based software, Snowflake Inc. and Domo, Inc. stand out as key players offering innovative data platforms. Both companies operate in the application software industry, focusing on empowering organizations through data-driven insights and real-time analytics. Their overlapping markets and distinct approaches to innovation make them compelling options for investors. Join me as we analyze which company presents the most attractive investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Snowflake Inc. and Domo, Inc. by providing an overview of these two companies and their main differences.
Snowflake Inc. Overview
Snowflake Inc. operates a cloud-based data platform that consolidates data into a single source of truth, enabling users to derive business insights, develop applications, and share data. Founded in 2012 and based in Bozeman, Montana, Snowflake serves a wide range of industries globally and is positioned as a leading provider in the software application sector with a market cap of 72.5B USD.
Domo, Inc. Overview
Domo, Inc. offers a cloud-based business intelligence platform that connects all organizational levels to real-time data and insights, facilitating business management through mobile access. Incorporated in 2010 and headquartered in American Fork, Utah, Domo operates internationally with a focus on enhancing data-driven decision-making. Its market cap stands at 334M USD, positioning it as a smaller player in the software application industry.
Key similarities and differences
Both companies operate in the software application industry, providing cloud-based platforms designed to enhance data utilization and decision-making across organizations. Snowflake focuses on data consolidation and application building with a broader market presence, while Domo emphasizes real-time business intelligence and mobile accessibility. The significant difference lies in their scale, with Snowflake’s market cap vastly exceeding Domo’s, reflecting their varying market reach and operational size.
Income Statement Comparison
The table below compares the most recent fiscal year income statement metrics for Snowflake Inc. and Domo, Inc., highlighting key financial figures for 2025.
| Metric | Snowflake Inc. (SNOW) | Domo, Inc. (DOMO) |
|---|---|---|
| Market Cap | 72.5B | 334M |
| Revenue | 3.63B | 317M |
| EBITDA | -1.10B | -50M |
| EBIT | -1.28B | -59M |
| Net Income | -1.29B | -82M |
| EPS | -3.86 | -2.13 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
Snowflake Inc.
Snowflake Inc. showed strong revenue growth from 2021 to 2025, increasing by over 500% to $3.63B in 2025, but net income remained negative, widening losses to -$1.29B. Gross margins were favorable at 66.5%, yet EBIT and net margins stayed deeply negative. The latest year saw revenue growth of 29.2%, but EBIT dropped 51%, reflecting rising expenses.
Domo, Inc.
Domo’s revenue grew steadily by about 51% over 2021-2025, reaching $317M in 2025, though it declined slightly by 0.6% in the last year. Gross margin remained strong at 74.5%, but EBIT and net margins were negative at -18.7% and -25.8% respectively. Net income losses narrowed modestly over the period, with a slight EPS decrease last year.
Which one has the stronger fundamentals?
Snowflake’s high revenue growth and solid gross margin contrast with worsening net losses and declining EBIT, resulting in a neutral overall income statement view. Domo’s slower revenue growth, smaller scale, and persistent losses present a less favorable picture, despite better margin stability. Snowflake’s scale and growth support stronger fundamentals, while Domo faces more challenges maintaining profitability.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Snowflake Inc. (SNOW) and Domo, Inc. (DOMO) based on their most recent fiscal year data (2025).
| Ratios | Snowflake Inc. (SNOW) | Domo, Inc. (DOMO) |
|---|---|---|
| ROE | -42.86% | 46.23% |
| ROIC | -25.32% | 197.65% |
| P/E | -47.0 | -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 | -527.7 | -3.0 |
| Asset Turnover | 0.40 | 1.48 |
| Fixed Asset Turnover | 5.53 | 8.17 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
All figures are based on the latest fiscal year ending January 31, 2025. Negative values in some ratios, such as P/E and interest coverage, reflect operating losses or other financial challenges reported by the companies.
Interpretation of the Ratios
Snowflake Inc.
Snowflake shows a mixed ratio profile with several unfavorable metrics including negative net margin (-35.45%), return on equity (-42.86%), and return on invested capital (-25.32%), indicating profitability challenges. However, liquidity ratios are favorable, with a current ratio of 1.75, and low debt-to-assets at 29.72%. Snowflake does not pay dividends, likely due to ongoing reinvestment in growth and high R&D expenses.
Domo, Inc.
Domo presents a balanced set of ratios, with favorable returns such as a 46.23% ROE and an exceptionally high 197.65% ROIC, but it suffers from liquidity issues, reflected in a low current ratio of 0.56 and a high debt-to-assets ratio of 63.23%. The company also does not pay dividends, which suggests a focus on growth or reinvestment strategies rather than shareholder distributions.
Which one has the best ratios?
Domo’s ratios show stronger profitability and efficiency compared to Snowflake, with higher returns and asset turnover, but its liquidity and leverage ratios are weaker. Snowflake maintains better liquidity and lower leverage but struggles with profitability and cash flow metrics. Overall, Domo has a more favorable profitability profile, whereas Snowflake offers stronger balance sheet stability.
Strategic Positioning
This section compares the strategic positioning of Snowflake Inc. and Domo, Inc., focusing on market position, key segments, and exposure to technological disruption:
Snowflake Inc.
- Market leader in cloud data platforms with strong competitive pressure in software applications.
- Revenue primarily from product sales of cloud data platform, supported by professional services.
- Operates a cloud-based data platform; exposed to disruption from evolving cloud technologies and data management trends.
Domo, Inc.
- Smaller market cap with higher beta, facing competitive pressure in business intelligence software.
- Revenue mainly from subscription-based business intelligence platform, supplemented by professional services.
- Cloud-based BI platform focusing on real-time data access; vulnerable to rapid changes in cloud and mobile tech.
Snowflake Inc. vs Domo, Inc. Positioning
Snowflake demonstrates a concentrated focus on cloud data platforms with significant product revenue, whereas Domo operates a more subscription-based, service-oriented BI platform. Snowflake’s larger scale contrasts with Domo’s smaller footprint and different revenue mix.
Which has the best competitive advantage?
Domo shows a very favorable MOAT with growing ROIC and value creation, indicating a durable competitive advantage. Snowflake, however, exhibits a very unfavorable MOAT with declining ROIC and value destruction, signaling weaker competitive positioning.
Stock Comparison
The stock prices of Snowflake Inc. and Domo, Inc. have both experienced notable declines over the past 12 months, with distinct trading volume dynamics and decelerating downward trends.
Trend Analysis
Snowflake Inc. shows a bearish trend with a -7.1% price change over the past year, accompanied by high volatility (std deviation 42.98) and a deceleration in its downward momentum. The stock’s highest and lowest prices were $274.88 and $108.56, respectively.
Domo, Inc. experienced a stronger bearish trend with a -30.25% price change over the same period, a lower volatility of 2.99, and also a deceleration in its decline. Its price ranged between $18.06 and $6.62.
Comparing both, Snowflake Inc. delivered a less severe market decline than Domo, Inc., indicating a relatively stronger performance despite both stocks trending downward.
Target Prices
The current analyst consensus indicates potential upside for both Snowflake Inc. and Domo, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Snowflake Inc. | 325 | 237 | 283.25 |
| Domo, Inc. | 13 | 10 | 11.5 |
Analysts expect Snowflake’s share price to rise significantly from its current 216.71 USD, while Domo’s consensus target of 11.5 USD also suggests a moderate upside from 8.3 USD. Both stocks show room for growth according to these targets.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Snowflake Inc. and Domo, Inc.:
Rating Comparison
Snowflake Inc. Rating
- Rating: C- indicating a very favorable overall rating.
- Discounted Cash Flow Score: Moderate at 3, suggesting fair valuation.
- ROE Score: Very unfavorable at 1, showing low efficiency in generating profit from equity.
- ROA Score: Very unfavorable at 1, reflecting poor asset utilization.
- Debt To Equity Score: Very unfavorable at 1, pointing to a weak balance sheet.
- Overall Score: Very unfavorable at 1, suggesting overall weak financial health.
Domo, Inc. Rating
- Rating: C indicating a very favorable overall rating.
- Discounted Cash Flow Score: Very unfavorable at 1, indicating potential overvaluation.
- ROE Score: Very favorable at 5, demonstrating strong profit generation from equity.
- ROA Score: Very unfavorable at 1, also indicating poor asset utilization.
- Debt To Equity Score: Very unfavorable at 1, similarly indicating financial risk.
- Overall Score: Moderate at 2, reflecting somewhat better overall financial health.
Which one is the best rated?
Based on the provided data, Domo holds a higher overall score of 2 compared to Snowflake’s 1 and a much stronger ROE score of 5 versus 1, indicating better efficiency in equity profit generation despite similar weaknesses in other areas.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Snowflake Inc. and Domo, Inc.:
Snowflake Inc. Scores
- Altman Z-Score: 6.22, indicating a safe zone, low bankruptcy risk.
- Piotroski Score: 4, average financial strength.
Domo, Inc. Scores
- Altman Z-Score: -10.04, in distress zone, high bankruptcy risk.
- Piotroski Score: 3, very weak financial strength.
Which company has the best scores?
Snowflake Inc. displays a much stronger Altman Z-Score, placing it in the safe zone, while Domo is in distress. Snowflake also has a slightly higher Piotroski Score, indicating better financial health compared to Domo.
Grades Comparison
The following is a comparison of recent grades assigned to Snowflake Inc. and Domo, Inc. by recognized financial institutions:
Snowflake Inc. Grades
Here are the latest grades for Snowflake Inc. from established grading companies:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Buy | 2025-12-08 |
| Needham | Maintain | Buy | 2025-12-04 |
| DA Davidson | Maintain | Buy | 2025-12-04 |
| Stifel | Maintain | Buy | 2025-12-04 |
| Keybanc | Maintain | Overweight | 2025-12-04 |
| Baird | Maintain | Outperform | 2025-12-04 |
| Morgan Stanley | Maintain | Overweight | 2025-12-04 |
| Deutsche Bank | Maintain | Buy | 2025-12-04 |
| Scotiabank | Maintain | Sector Outperform | 2025-12-04 |
| Canaccord Genuity | Maintain | Buy | 2025-12-04 |
Snowflake’s grades consistently indicate a strong buy or outperform stance, reflecting confidence in its prospects.
Domo, Inc. Grades
Presented below are the recent grades for Domo, Inc. by recognized grading companies:
| 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 grades show a more mixed outlook, with several neutral and hold ratings alongside some buy and outperform recommendations.
Which company has the best grades?
Snowflake Inc. has received more consistently strong buy and outperform grades compared to Domo, Inc., whose ratings include more neutral and hold assessments. This suggests Snowflake is currently viewed more favorably by analysts, potentially implying higher confidence in its growth or stability.
Strengths and Weaknesses
Below is a comparison table summarizing the key strengths and weaknesses of Snowflake Inc. (SNOW) and Domo, Inc. (DOMO) based on their recent financial and strategic metrics.
| Criterion | Snowflake Inc. (SNOW) | Domo, Inc. (DOMO) |
|---|---|---|
| Diversification | Moderate: Primarily product revenue with some professional services; steadily growing product revenue (3.46B in 2025) | Moderate: Subscription-focused with professional services; stable subscription growth (286M in 2025) |
| Profitability | Weak: Negative net margin (-35.45%), negative ROIC (-25.32%), value destroying | Improving: Negative net margin (-25.84%) but strong ROIC (197.65%), value creating and growing profitability |
| Innovation | Moderate: Solid product growth, but declining capital efficiency | Strong: High fixed asset turnover (8.17) and asset turnover (1.48) indicate efficient innovation use |
| Global presence | Strong: Large market share in cloud data platforms | Moderate: Smaller scale but increasing subscription base |
| Market Share | Large in cloud data warehousing but challenged by profitability issues | Smaller niche player with growing value creation and innovation efficiency |
In summary, Snowflake shows strong product revenue growth and market presence but struggles with profitability and capital efficiency. Domo demonstrates a durable competitive advantage with improving profitability and efficient asset use, though on a smaller scale. Investors should weigh Snowflake’s scale against Domo’s stronger value creation trend and innovation efficiency.
Risk Analysis
Below is a comparative table highlighting key risks for Snowflake Inc. and Domo, Inc. based on the most recent data from 2025:
| Metric | Snowflake Inc. (SNOW) | Domo, Inc. (DOMO) |
|---|---|---|
| Market Risk | Beta 1.09 (moderate) | Beta 1.77 (high volatility) |
| Debt level | Debt/Equity 0.9 (neutral) | Debt/Equity -0.76 (favorable but high debt-to-assets 63.23%) |
| Regulatory Risk | Moderate (US tech sector) | Moderate (US tech sector) |
| Operational Risk | Large scale, 7.8K employees, complex cloud platform | Smaller scale, 888 employees, cloud BI platform |
| Environmental Risk | Low (software industry) | Low (software industry) |
| Geopolitical Risk | Moderate (global clients) | Moderate (global clients) |
The most likely and impactful risks for both companies include market volatility—particularly higher for Domo due to its elevated beta—and operational challenges tied to scale and technology complexity. Snowflake’s moderate debt and solid liquidity reduce financial risk, while Domo’s distress-level Altman Z-score and weaker liquidity ratios signal notable financial vulnerability. Both operate in a regulated US tech environment with limited environmental risk.
Which Stock to Choose?
Snowflake Inc. (SNOW) exhibits strong revenue growth of 29.2% in 2025 with favorable gross margins at 66.5%, but suffers from negative profitability ratios including a -42.9% ROE and -25.3% ROIC, alongside a slightly unfavorable global ratio profile and a very unfavorable rating of C-.
Domo, Inc. (DOMO) shows modest revenue decline (-0.6%) in 2025 and a mixed income statement with a favorable gross margin of 74.5%, but faces liquidity challenges with a low current ratio of 0.56; it has a favorable ROE of 46.2% and ROIC of 197.7%, a neutral global ratio opinion, and a very favorable rating of C.
Considering ratings and financial metrics, DOMO’s strong value creation and improving ROIC might appeal to risk-tolerant investors seeking growth, while SNOW’s solid revenue expansion but weaker profitability may appear more suitable for investors prioritizing established scale and market presence, albeit with caution.
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 Snowflake Inc. and Domo, Inc. to enhance your investment decisions:
