Reviewing Zuora (NYSE:ZUO) & Klaviyo (NYSE:KVYO)

Zuora (NYSE:ZUO) and Klaviyo (NYSE:KVYO) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Valuation and Earnings

This table compares Zuora and Klaviyo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zuora	$445.68 million	2.75	-$68.19 million	($0.43)	-19.49
Klaviyo	$809.63 million	11.61	-$308.23 million	N/A	N/A

Zuora has higher earnings, but lower revenue than Klaviyo.

Insider and Institutional Ownership

83.0% of Zuora shares are owned by institutional investors. Comparatively, 45.4% of Klaviyo shares are owned by institutional investors. 8.6% of Zuora shares are owned by company insiders. Comparatively, 53.2% of Klaviyo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Zuora and Klaviyo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zuora	0	3	4	0	2.57
Klaviyo	0	3	16	0	2.84

Zuora currently has a consensus target price of $11.86, indicating a potential upside of 41.49%. Klaviyo has a consensus target price of $36.00, indicating a potential upside of 1.35%. Given Zuora’s higher possible upside, analysts clearly believe Zuora is more favorable than Klaviyo.

Profitability

This table compares Zuora and Klaviyo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zuora	-10.60%	-12.54%	-2.29%
Klaviyo	-42.15%	-32.19%	-27.22%

Summary

Zuora beats Klaviyo on 6 of the 11 factors compared between the two stocks.

About Zuora

Zuora, Inc. provides a monetization suite for modern businesses to help companies launch and scale new services and operate dynamic customer-centric business models. The company offers Zuora Billing that allows customers to deploy various pricing and packaging strategies to monetize their recurring revenue streams, bill customers, calculate prorations when subscriptions change, and automate billing and payment operations; Zuora Revenue, a revenue recognition and automation solution that accounting teams use to manage their complex revenue streams; Zuora Payments to provide payment orchestration services for companies looking to operate globally; and Zephr, a digital subscriber experience platform that helps companies orchestrate dynamic experiences that increase conversion, reduce churn, and nurture ongoing subscriber relationships. It also provides Zuora Platform, an orchestration engine for all subscription data and processes; and other software. The company markets its products through its systems integrators, consultants, and ecosystem partners. Zuora, Inc. was incorporated in 2006 and is headquartered in Redwood City, California.

About Klaviyo

Klaviyo, Inc., a technology company, provides a software-as-a-service platform in the United States, other Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers Klaviyo, a cloud-native platform for data store, segmentation engine, campaigns and flows, and messaging infrastructure. It also provides email to send personalized marketing emails, including drag-and-drop email templates to edit and customize pre-built templates; email campaigns and automations with smart send time features, generative artificial intelligence for subject line creation, A/B testing tools, and consumer list segmentation; short message services to send targeted marketing text messages to consumers, as well as built-in contact cards to ensure that texts does not appear as random numbers; and push, a personalized push notification to engage with consumer. In addition, the company offers other applications, such as reviews, which collect product reviews; and customer data platform that allows to manage, deploy, transform, and sync data. It serves its products to entrepreneurs, small and medium-sized businesses to mid-market businesses, and enterprises. The was incorporated in 2012 and is headquartered in Boston, Massachusetts.