Domo (NASDAQ:DOMO) & Ceridian HCM (NYSE:CDAY) Critical Comparison

Ceridian HCM (NYSE:CDAY) and Domo (NASDAQ:DOMO) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Analyst Ratings

This is a breakdown of current recommendations for Ceridian HCM and Domo, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ceridian HCM 0 6 8 0 2.57
Domo 0 1 5 0 2.83

Ceridian HCM presently has a consensus target price of $93.24, suggesting a potential upside of 8.02%. Domo has a consensus target price of $83.83, suggesting a potential upside of 48.48%. Given Domo’s stronger consensus rating and higher possible upside, analysts clearly believe Domo is more favorable than Ceridian HCM.

Profitability

This table compares Ceridian HCM and Domo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ceridian HCM 1.40% 1.34% 0.43%
Domo -47.56% N/A -47.31%

Valuation and Earnings

This table compares Ceridian HCM and Domo’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ceridian HCM $824.10 million 15.37 $78.70 million $0.26 331.96
Domo $173.40 million 9.75 -$125.66 million ($4.57) -12.35

Ceridian HCM has higher revenue and earnings than Domo. Domo is trading at a lower price-to-earnings ratio than Ceridian HCM, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Ceridian HCM has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Domo has a beta of 3.07, indicating that its share price is 207% more volatile than the S&P 500.

Institutional and Insider Ownership

68.1% of Domo shares are owned by institutional investors. 17.6% of Ceridian HCM shares are owned by company insiders. Comparatively, 15.5% of Domo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Ceridian HCM beats Domo on 10 of the 14 factors compared between the two stocks.

About Ceridian HCM

Ceridian HCM Holding Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. The company offers Dayforce, a cloud HCM platform that provides human resources (HR), payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud HR and payroll solution for the small business market. It also provides Bureau solutions for payroll and payroll-related services. The company sells its solutions through direct sales force and third-party channels. Ceridian HCM Holding Inc. was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.

About Domo

Domo, Inc. operates a cloud-based platform in the United States. Its platform digitally connects from the chief executive officer to the frontline employee with the people, data, and systems in an organization, giving them access to real-time data and insights, and allowing them to manage business from smartphones. The company was formerly known as Domo Technologies, Inc. and changed its name to Domo, Inc. in December 2011. Domo, Inc. was founded in 2010 and is headquartered in American Fork, Utah.

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