Head-To-Head Analysis: Klaviyo (NYSE:KVYO) and FalconStor Software (OTCMKTS:FALC)

FalconStor Software (OTCMKTS:FALC) and Klaviyo (NYSE:KVYO) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Institutional & Insider Ownership

9.5% of FalconStor Software shares are owned by institutional investors. Comparatively, 45.4% of Klaviyo shares are owned by institutional investors. 52.8% of FalconStor Software shares are owned by insiders. Comparatively, 53.2% of Klaviyo shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FalconStor Software	14.90%	-9.90%	15.87%
Klaviyo	-42.15%	-32.19%	-27.22%

Valuation and Earnings

This table compares FalconStor Software and Klaviyo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FalconStor Software	$11.60 million	0.89	$980,000.00	($0.01)	-145.00
Klaviyo	$809.63 million	12.52	-$308.23 million	($1.41)	-26.96

FalconStor Software has higher earnings, but lower revenue than Klaviyo. FalconStor Software is trading at a lower price-to-earnings ratio than Klaviyo, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for FalconStor Software and Klaviyo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FalconStor Software	0	0	0	0	N/A
Klaviyo	0	3	15	0	2.83

Klaviyo has a consensus price target of $37.29, indicating a potential downside of 1.88%. Given Klaviyo’s higher probable upside, analysts clearly believe Klaviyo is more favorable than FalconStor Software.

Summary

Klaviyo beats FalconStor Software on 7 of the 12 factors compared between the two stocks.

About FalconStor Software

FalconStor Software, Inc., a storage software company, enables enterprise customers and managed service providers to secure, migrate, and protect their data worldwide. It offers FalconStor Virtual Tape Library, a software that emulates and replaces cumbersome physical tape libraries for archive related data preservation without being replacing their enterprise backup and archive software and associated processes; FalconStor StorSafe, a long-term archive data management software; FalconStor Continuous Data Protector delivers instant data availability, and reliable recovery; and FalconStor Network Storage Server for data storage virtualization and business continuity in heterogeneous environments. The company also provides FalconStor StorSigh, a long-term archive and business continuity driven data replication from one centralized management point; FalconStor RecoverTrac Disaster Recovery Technology that streamlines the implementation, testing, and execution of disaster recovery operations; and FalconStor MicroScanTM Technology, which minimizes the amount of data transferred during replication by eliminating inefficiencies at the application and file system layer. It sells its products through authorized partners, value-added resellers, solution providers, system integrators, direct market resellers, distributors, managed service providers, cloud service providers, and original equipment manufacturers, as well as directly to customers. The company was incorporated in 1994 and is headquartered in Austin, Texas.

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.