Critical Review: JFrog (NASDAQ:FROG) vs. Klaviyo (NYSE:KVYO)

Klaviyo (NYSE:KVYO) and JFrog (NASDAQ:FROG) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Risk & Volatility

Klaviyo has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, JFrog has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Klaviyo	-5.23%	0.86%	0.73%
JFrog	-13.98%	-5.36%	-3.77%

Insider & Institutional Ownership

45.4% of Klaviyo shares are owned by institutional investors. Comparatively, 85.0% of JFrog shares are owned by institutional investors. 53.2% of Klaviyo shares are owned by company insiders. Comparatively, 15.7% of JFrog shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Klaviyo and JFrog, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Klaviyo	0	4	14	0	2.78
JFrog	0	3	14	1	2.89

Klaviyo presently has a consensus target price of $42.29, suggesting a potential upside of 5.34%. JFrog has a consensus target price of $37.72, suggesting a potential upside of 15.18%. Given JFrog’s stronger consensus rating and higher probable upside, analysts clearly believe JFrog is more favorable than Klaviyo.

Earnings & Valuation

This table compares Klaviyo and JFrog”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Klaviyo	$698.10 million	15.51	-$308.23 million	($0.18)	-223.05
JFrog	$349.89 million	9.54	-$61.26 million	($0.53)	-61.79

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

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.

About JFrog

JFrog Ltd. provides end-to-end hybrid software supply chain platform in the United States, Israel, India, and internationally. The company offers JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages; JFrog Curation that functions as a guardian outside the software development pipeline, controlling the admission of packages into an organization, primarily from open source or public repositories; JFrog Xray, which scans JFrog Artifactory to secure all software packages; JFrog Advanced Security, an optional add-on for select JFrog subscriptions; and JFrog Distribution that provides software package distribution. It also provides JFrog Artifactory Edge that utilizes and leverages metadata from JFrog Artifactory to facilitate the transfer of the incremental changes in software packages from their previous versions; JFrog Mission Control, a platform control panel that provides a view of moving pieces of an organization’s software supply chain workflow; JFrog Insight, a DevOps intelligence tool; JFrog Connect, a device management solution that allows companies to manage software updates and monitor performance in IoT device fleets; and JFrog Pipelines, a continuous integration and delivery tool for automating and orchestrating the movement of software packages. In addition, the company provides JFrog Pro that provides access to the universal version of JFrog Artifactory and ongoing updates, upgrades, and bug fixes; JFrog Pro X, a self-hosted-only subscription; JFrog Enterprise X, which offers cluster configuration, federated repositories, multi-region replication, larger enterprise-scale deployments, service-level agreement support, and deeper security; and JFrog Enterprise Plus, a full platform subscription option. It serves technology, financial services, retail, healthcare, and telecommunications organizations. JFrog Ltd. was incorporated in 2008 and is headquartered in Sunnyvale, California.