Critical Comparison: Konami (OTCMKTS:KNMCY) versus Semrush (NASDAQ:SEMR)

Konami (OTCMKTS:KNMCY) and Semrush (NASDAQ:SEMR) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Risk & Volatility

Konami has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Semrush has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Profitability

This table compares Konami and Semrush’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Konami	7.25%	6.91%	4.60%
Semrush	3.29%	4.93%	3.29%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Konami and Semrush, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Konami	0	0	0	0	0.00
Semrush	0	2	4	1	2.86

Semrush has a consensus target price of $13.50, suggesting a potential upside of 91.35%. Given Semrush’s stronger consensus rating and higher probable upside, analysts clearly believe Semrush is more favorable than Konami.

Valuation & Earnings

This table compares Konami and Semrush”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Konami	$2.42 billion	3.56	$183.01 million	$1.33	47.83
Semrush	$428.63 million	2.45	$950,000.00	($0.02)	-352.75

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

Institutional & Insider Ownership

0.0% of Konami shares are owned by institutional investors. Comparatively, 32.9% of Semrush shares are owned by institutional investors. 55.6% of Semrush shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Semrush beats Konami on 8 of the 15 factors compared between the two stocks.

About Konami

Konami Holdings Corporation, together with its subsidiaries, primarily engages in the digital entertainment business. It operates through four segments: Digital Entertainment, Health & Fitness, Gaming & Systems, and Pachislot & Pachinko Machines. The Digital Entertainment segment manufactures and sells digital content and related products, including mobile games, arcade games, card games, and computer and video games. The Health & Fitness segment operates health and fitness clubs, as well as designs, manufactures, and sells fitness machines and health products. The Gaming & Systems segment designs, manufactures, sells, and services gaming machines and casino management systems. The Pachislot & Pachinko Machines segment researches, designs, produces, and sells pachinko slot and pachinko machines. It operates in Japan and other Asia/Oceania countries, the United States, and Europe. The company was formerly known as Konami Corporation and changed its name to Konami Holdings Corporation in October 2015. Konami Holdings Corporation was founded in 1969 and is headquartered in Tokyo, Japan.

About Semrush

Semrush Holdings, Inc. develops an online visibility management software-as-a-service platform in the United States, the United Kingdom, and internationally. The company enables companies to identify and reach the right audience for their content through the right channels. Its platform enables the company's customers to understand trends and act upon insights to enhance the online visibility, and drive traffic to their websites and social media pages, as well as online listings, distribute targeted content to their customers, and measure the digital marketing campaigns. The company serves small and midsize businesses, enterprises, and marketing agencies, including consumer internet, digital media, education, financial services, healthcare, retail, software, telecommunications, and others. Semrush Holdings, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.