In the realm of business services companies, Klaviyo and Zuora have emerged as prominent players. Both companies offer software-as-a-service platforms, but the question remains: which is the better stock? To determine this, we will compare various factors including dividends, institutional ownership, risk, valuation, earnings, profitability, and analyst recommendations.
When it comes to profitability, Klaviyo and Zuora exhibit different performance metrics. Klaviyo boasts higher net margins, return on equity, and return on assets compared to Zuora. However, Zuora has managed to achieve higher earnings despite having lower revenue than Klaviyo.
In terms of institutional and insider ownership, Zuora takes the lead. With 83.0% of its shares held by institutional investors, Zuora demonstrates strong confidence from hedge funds, endowments, and large money managers. In contrast, Klaviyo has 45.4% institutional ownership. Additionally, 8.6% of Zuora shares are held by insiders, while Klaviyo has a higher insider ownership of 53.2%.
Moving on to analyst recommendations, recent ratings and target prices reported by MarketBeat indicate that Zuora has outperformed Klaviyo in this aspect. However, it is important to note that this is just one factor among many.
Considering these factors, Zuora emerges as the winner in six out of the eleven categories compared between the two stocks.
Klaviyo, Inc., founded in 2012 and headquartered in Boston, Massachusetts, provides a software-as-a-service platform known as Klaviyo. This cloud-native platform offers various features such as data storage, segmentation engine, campaigns and flows, and messaging infrastructure. Klaviyo also provides personalized marketing emails, short message services, push notifications, and other applications to entrepreneurs, small and medium-sized businesses, mid-market businesses, and enterprises.
Zuora, Inc., established in 2006 and headquartered in Redwood City, California, offers a monetization suite for modern businesses. Their suite helps companies launch and scale new services while operating dynamic customer-centric business models. Zuora’s product lineup includes Zuora Billing, Zuora Revenue, Zuora Payments, and Zephr. These solutions enable companies to deploy pricing and packaging strategies, automate billing and payment operations, manage complex revenue streams, and orchestrate dynamic subscriber experiences.