Critical Comparison: Klaviyo (KVYO) versus Its Peers

Klaviyo (NYSE:KVYO) is one of 429 public companies in the “Prepackaged software” industry, but how does it contrast to its peers? We will compare Klaviyo to similar businesses based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Institutional and Insider Ownership

45.4% of Klaviyo shares are held by institutional investors. Comparatively, 57.2% of shares of all “Prepackaged software” companies are held by institutional investors. 53.2% of Klaviyo shares are held by company insiders. Comparatively, 19.8% of shares of all “Prepackaged software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Klaviyo and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Klaviyo	$809.63 million	-$308.23 million	-27.14
Klaviyo Competitors	$2.53 billion	$355.83 million	15.16

Klaviyo’s peers have higher revenue and earnings than Klaviyo. Klaviyo is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and target prices for Klaviyo and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Klaviyo	0	2	15	0	2.88
Klaviyo Competitors	2276	15398	30343	856	2.61

Klaviyo presently has a consensus price target of $37.38, suggesting a potential downside of 2.34%. As a group, “Prepackaged software” companies have a potential upside of 13.93%. Given Klaviyo’s peers higher probable upside, analysts clearly believe Klaviyo has less favorable growth aspects than its peers.

Profitability

This table compares Klaviyo and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Klaviyo	-42.15%	-32.19%	-27.22%
Klaviyo Competitors	-60.96%	-7.75%	-7.30%

Summary

Klaviyo peers beat Klaviyo on 8 of the 12 factors compared.

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.