Analyzing Similarweb (SMWB) and Its Competitors

Similarweb (NYSE:SMWB) is one of 954 publicly-traded companies in the “Software” industry, but how does it compare to its competitors? We will compare Similarweb to similar companies based on the strength of its dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Similarweb and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Similarweb	1	4	5	1	2.55
Similarweb Competitors	5714	21419	44677	1492	2.57

Similarweb presently has a consensus target price of $9.71, suggesting a potential upside of 10.89%. As a group, “Software” companies have a potential upside of 27.84%. Given Similarweb’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Similarweb has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

57.6% of Similarweb shares are owned by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are owned by institutional investors. 62.4% of Similarweb shares are owned by company insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Similarweb and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Similarweb	-7.37%	-19.81%	-1.74%
Similarweb Competitors	-612.31%	21.01%	-8.89%

Valuation and Earnings

This table compares Similarweb and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Similarweb	$282.60 million	-$32.94 million	-35.04
Similarweb Competitors	$1.79 billion	$385.13 million	111.21

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

Risk and Volatility

Similarweb has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Similarweb’s competitors have a beta of 1.24, indicating that their average stock price is 24% more volatile than the S&P 500.

Summary

Similarweb competitors beat Similarweb on 7 of the 13 factors compared.

Similarweb Company Profile

Similarweb Ltd. provides cloud-based digital intelligence solutions in the United States, Europe, the Asia Pacific, the United Kingdom, Israel, and internationally. The company offers digital research intelligence solutions for its customers to benchmark performance against competitors and market leaders, analyze trends in the market, conduct deeper research into specific companies, and analyze audience behavior; and digital marketing intelligence solutions for its customers to understand their competitors' online acquisition strategies in each marketing channel, and optimize their own strategies. It also provides sales intelligence solutions for its customers to access relevant buying signals and digital insights of their customers to generate leads quickly; and shopper intelligence solutions for its customers to analyze a view of their customers' digital journeys, monitor consumer demand, increase brand visibility in the search process, and optimize category and product level conversion in the purchase process. In addition, the company offers investor intelligence solutions for its customers to access an end-to-end view of market, sector, and company performance to ideate and monitor investment opportunities; forecast market performance; and perform due diligence. Further, it provides data-as-a-service and advisory services. The company serves retail, consumer packaged goods, consumer finance, consultancies, marketing and advertising agencies, media and publishers, business-to-business software, payment processors, travel, and institutional investors. Similarweb Ltd. was incorporated in 2009 and is headquartered in Givatayim, Israel.