Critical analysis: Similarweb (NYSE: SMWB) and Alphabet (NASDAQ: GOOG)
Similarweb (NYSE:SMWB – Get Rating) and Alphabet (NASDAQ:GOOG – Get Rating) are both IT and technology companies, but which company is better? We will compare the two companies based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.
Profitability
This table compares the net margins, return on equity, and return on assets of Similarweb and Alphabet.
| Net margins | Return on equity | return on assets | |
| Similarweb | -50.10% | -178.53% | -35.44% |
| Alphabet | 27.57% | 30.18% | 21.31% |
Valuation and benefits
This table compares revenue, earnings per share (EPS), and valuation of Similarweb and Alphabet.
| Gross revenue | Price/sales ratio | Net revenue | Earnings per share | Price/earnings ratio | |
| Similarweb | $137.67 million | 6.25 | -$68.98 million | N / A | N / A |
| Alphabet | $257.64 billion | 5.91 | $76.03 billion | $110.56 | 20.92 |
Alphabet has higher revenue and profit than Similarweb.
Institutional and Insider Ownership
42.9% of Similarweb’s shares are held by institutional investors. By comparison, 31.2% of Alphabet’s shares are held by institutional investors. 13.0% of Alphabet’s stock is held by company insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of the current ratings and price targets for Similarweb and Alphabet, as reported by MarketBeat.com.
| Sales Ratings | Hold odds | Buy reviews | Strong buy odds | Rating | |
| Similarweb | 0 | 0 | 7 | 0 | 3.00 |
| Alphabet | 0 | 1 | 29 | 0 | 2.97 |
Similarweb currently has a consensus target price of $25.67, indicating a potential upside of 121.65%. Alphabet has a consensus target price of $3,323.07, indicating a potential upside of 43.66%. Given Similarweb’s stronger consensus rating and higher possible upside, analysts clearly believe that Similarweb is more favorable than Alphabet.
Summary
Alphabet beats Similarweb on 7 of the 11 factors compared between the two stocks.
Similarweb Company Profile (Get an assessment)
Similarweb Ltd. provides a digital intelligence platform in the US, Europe, Asia-Pacific, UK, Israel and internationally. It offers digital search intelligence solutions that enable senior executives, strategy, business intelligence, and consumer insights teams to gauge performance against competitors and market leaders , to analyze market trends, to conduct further research on specific companies and to analyze the behavior of the public; and digital marketing solutions, which enable marketers, search engine optimization and content managers, pay-per-click, performance marketers, affiliate marketers and media buyers to understand their competitors’ online acquisition strategies in each marketing channel. The company also provides customer intelligence solutions that enable digital commerce executives and category and product managers to analyze a view of their customers’ digital journeys, monitor consumer demand, increase the brand in the research process and to optimize conversion at category and product level in the purchase process; and sales intelligence solutions, which enable sales and operations management, sales reps and account management teams to access relevant buying signals and digital information about their customers to quickly generate prospects. Additionally, it offers an investor intelligence solution that enables portfolio managers, investment professionals, data scientists, and research analysts to access an end-to-end view of market performance, industry or company to imagine and monitor investment opportunities, forecast market performance and conduct due diligence. The Company serves retail, consumer packaged goods, travel, consumer finance, business-to-business software and logistics businesses; and consultants, marketing and advertising agencies, media and publishers, payment processors and institutional investors. Similarweb Ltd. was incorporated in 2009 and is headquartered in Tel Aviv, Israel.
Alphabet Company Profile (Get an assessment)
Alphabet Inc. provides various products and platforms in the United States, Europe, the Middle East, Africa, Asia-Pacific, Canada and Latin America. It operates through Google Services, Google Cloud and Other Bets segments. The Google Services segment offers products and services, including Ads, Android, Chrome, Hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search and YouTube. It is also involved in selling apps and in-app purchases and digital content in the Google Play store; and Fitbit wearables, Google Nest home products, Pixel phones and other devices, as well as providing non-advertising YouTube services. The Google Cloud segment offers infrastructure, platform and other services; Google Workspace which includes cloud-based collaboration tools for businesses, such as Gmail, Docs, Drive, Calendar and Meet; and other services for corporate clients. The Other Bets segment sells healthcare technology and internet services. The company was founded in 1998 and is based in Mountain View, California.
Get news and reviews for Similarweb Daily – Enter your email address below to receive a concise daily summary of the latest news and analyst ratings for Similarweb and related companies with MarketBeat.com’s free daily email newsletter.