Reviewing Domo (NASDAQ:DOMO) and Wellchange (NASDAQ:WCT)

Wellchange (NASDAQ:WCT) and Domo (NASDAQ:DOMO) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Earnings and Valuation

This table compares Wellchange and Domo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wellchange	$2.37 million	23.68	N/A	N/A	N/A
Domo	$318.46 million	0.95	-$75.57 million	($2.19)	-3.53

Wellchange has higher earnings, but lower revenue than Domo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wellchange	N/A	N/A	N/A
Domo	-26.05%	N/A	-39.27%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Wellchange and Domo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wellchange	0	0	0	0	0.00
Domo	0	4	1	1	2.50

Domo has a consensus target price of $10.25, suggesting a potential upside of 32.77%. Given Domo’s stronger consensus rating and higher possible upside, analysts clearly believe Domo is more favorable than Wellchange.

Insider and Institutional Ownership

76.6% of Domo shares are held by institutional investors. 14.0% of Domo shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Domo beats Wellchange on 7 of the 10 factors compared between the two stocks.

About Wellchange

Wellchange Holdings Company Limited, through its subsidiaries, operates as an enterprise software solution services provider in Hong Kong. The company provides tailor-made software solutions, cloud-based software-as-a-service (SaaS) solutions, and white-labelled software design and development services. The company also operates MR. CLOUD, a cloud-based SaaS enterprise resource planning software platform based on subscription services to support back-office and front-office functions, such as finance and accounting, procurement, manufacturing, inventory management, order management, warehouse management, supply chain management, customer relationship management, professional services automation, project and file management, human resources management, e-commerce, and marketing automation. In addition, the company offers mobile application, web development, and desktop software development services. It serves small and medium-sized businesses and corporate customers. The company was founded in 2011 and is based in Cheung Sha Wan, Hong Kong. Wellchange Holdings Company Limited operates as a subsidiary of Power Smart International Limited.

About Domo

Domo, Inc., together with its subsidiaries, operates a cloud-based business intelligence platform in North America, Western Europe, Canada, Australia, and Japan. Its platform digitally connects from the chief executive officer to the frontline employee with the various people, data, and systems in an organization, as well as giving them access to real-time data and insights, and allowing them to manage business via various browsers and visualization engines accessible across laptops, TV screens, monitors, tablets, and smartphones. The company was formerly known as Domo Technologies, Inc. and changed its name to Domo, Inc. in December 2011. Domo, Inc. was incorporated in 2010 and is headquartered in American Fork, Utah.