Direct comparison: Similarweb (NYSE: SMWB) and Bitfarms (NASDAQ: BITF)
Similarweb (NYSE:SMWB – Get Rating) and Bitfarms (NASDAQ:BITF – Get Rating) are both small-cap IT and technology companies, but which is the better stock? We’ll compare the two companies based on valuation strength, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.
Analyst Notes
This is a summary of the current recommendations and price targets for Similarweb and Bitfarms, as provided by MarketBeat.com.
| Sales Ratings | Hold odds | Buy reviews | Strong buy odds | Rating | |
| Similarweb | 0 | 0 | 3 | 0 | 3.00 |
| Bit Farms | 0 | 0 | 1 | 0 | 3.00 |
Similarweb currently has a consensus target price of $20.80, suggesting a potential upside of 138.81%. Bitfarms has a consensus target price of $7.00, suggesting a potential upside of 332.10%. Given Bitfarms’ likely higher upside, analysts clearly believe that Bitfarms is more favorable than Similarweb.
Benefits and evaluation
This chart compares the revenue, earnings per share, and valuation of Similarweb and Bitfarms.
| Gross revenue | Price/sales ratio | Net revenue | Earnings per share | Price/earnings ratio | |
| Similarweb | $137.67 million | 4.70 | -$68.98 million | ($1.22) | -7.14 |
| Bit Farms | $169.49 million | 1.90 | $22.13 million | $0.18 | 9.00 |
Bitfarms has higher revenue and profit than Similarweb. Similarweb trades at a lower price-to-earnings ratio than Bitfarms, indicating that it is currently the more affordable of the two stocks.
Volatility and risk
Similarweb has a beta of 0.19, which suggests its stock price is 81% less volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.11, which suggests its stock price is 211% more volatile than the S&P 500.
Institutional and Insider Ownership
42.9% of Similarweb’s shares are held by institutional investors. Comparatively, 17.2% of Bitfarms shares are held by institutional investors. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is poised for long-term growth.
Profitability
This table compares the net margins, return on equity, and return on assets of Similarweb and Bitfarms.
| Net margins | Return on equity | return on assets | |
| Similarweb | -54.07% | -88.43% | -34.75% |
| Bit Farms | 18.88% | 10.75% | 8.46% |
Summary
Bitfarms beats Similarweb on 9 out of 12 factors compared between the two stocks.
About Similarweb
(Get an evaluation)
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 , analyze market trends, conduct further research on specific companies and analyze audience behavior; 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.
About Bit Farms
(Get an evaluation)
Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in North America. It owns and operates server farms that primarily validate transactions on the Bitcoin blockchain and earn cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also takes care of hosting third-party mining hardware. The company was founded in 2017 and is headquartered in Toronto, Canada.
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