Locafy (NASDAQ:LCFY) versus Kaltura (NASDAQ:KLTR) Financial Comparison

Kaltura (NASDAQ:KLTR) and Locafy (NASDAQ:LCFY) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares Kaltura and Locafy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kaltura	$178.72 million	1.43	-$31.32 million	($0.12)	-13.75
Locafy	$2.76 million	2.94	-$1.96 million	($1.23)	-4.77

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

Volatility and Risk

Kaltura has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Locafy has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.

Profitability

This table compares Kaltura and Locafy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kaltura	-10.52%	-57.20%	-7.18%
Locafy	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Kaltura and Locafy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kaltura	1	0	1	0	2.00
Locafy	0	0	0	0	0.00

Kaltura presently has a consensus target price of $2.25, indicating a potential upside of 36.36%. Given Kaltura’s stronger consensus rating and higher probable upside, equities analysts plainly believe Kaltura is more favorable than Locafy.

Insider and Institutional Ownership

30.8% of Kaltura shares are held by institutional investors. Comparatively, 0.0% of Locafy shares are held by institutional investors. 13.5% of Kaltura shares are held by insiders. Comparatively, 28.7% of Locafy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Locafy beats Kaltura on 8 of the 14 factors compared between the two stocks.

About Kaltura

Kaltura, Inc. provides various software-as-a-service (SaaS) products and solutions and a platform-as-a-service (PaaS) in the United States, Europe, the Middle East, Africa, and internationally. The company operates through two segments, Enterprise, Education, and Technology (EE&T); and Media and Telecom (M&T). It offers video products, such as virtual and hybrid events, webinars, video portals, online learning, and content portals for training, marketing, virtual and hybrid events, communication, collaboration, sales, and customer care; and education solutions, such as learning management system video and lecture capture solutions. The company also provides online video experiences, including for over-the-top (OTT) television, cloud TV, web video publishing, video-based teaching, learning, training, video-based marketing, and video-based collaboration. In addition, it offers application programming interfaces (APIs), software development kits, and experience components, including live, real-time and on-demand video, ingestion, transcoding, enrichment, management, distribution, engagement, monetization, and deep viewer analytics, as well as video player, video editor, video capture tool, and chat and networking widgets. The company serves a range of industries, including financial services, high technology, healthcare and pharmaceuticals, education, public sector, media, telecommunications, information technology (IT) and professional services, retail, and manufacturing. Kaltura, Inc. was incorporated in 2006 and is headquartered in New York, New York.

About Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.