ZW Data Action Technologies (NASDAQ:CNET – Get Free Report) and Similarweb (NYSE:SMWB – Get Free Report) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.
Volatility and Risk
ZW Data Action Technologies has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Similarweb has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.
Valuation and Earnings
This table compares ZW Data Action Technologies and Similarweb”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ZW Data Action Technologies | $15.44 million | 0.23 | -$5.97 million | ($1.86) | -0.81 |
| Similarweb | $249.91 million | 2.55 | -$11.46 million | ($0.14) | -55.00 |
ZW Data Action Technologies has higher earnings, but lower revenue than Similarweb. Similarweb is trading at a lower price-to-earnings ratio than ZW Data Action Technologies, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
0.0% of ZW Data Action Technologies shares are held by institutional investors. Comparatively, 57.6% of Similarweb shares are held by institutional investors. 14.2% of ZW Data Action Technologies shares are held by insiders. Comparatively, 62.4% of Similarweb shares are held by 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 ZW Data Action Technologies and Similarweb’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ZW Data Action Technologies | -26.48% | -89.60% | -42.06% |
| Similarweb | -4.58% | -47.62% | -5.03% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for ZW Data Action Technologies and Similarweb, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ZW Data Action Technologies | 0 | 0 | 0 | 0 | 0.00 |
| Similarweb | 0 | 0 | 9 | 1 | 3.10 |
Similarweb has a consensus price target of $15.75, suggesting a potential upside of 104.55%. Given Similarweb’s stronger consensus rating and higher possible upside, analysts plainly believe Similarweb is more favorable than ZW Data Action Technologies.
Summary
Similarweb beats ZW Data Action Technologies on 13 of the 15 factors compared between the two stocks.
About ZW Data Action Technologies
ZW Data Action Technologies Inc., through its subsidiaries, offers omni-channel advertising, precision marketing, and data analysis management systems in the People’s Republic of China. The company offers Internet advertising, precision marketing, and related data services to small and medium enterprises through its Internet portals, including 28.com and liansuo.com that provide advertisers with tools to build sales channels in the form of franchisees, sales agents, distributors, and/or resellers. It also develops and operates blockchain technology-based products and services, as well as blockchain-based SaaS services that provides one-stop blockchain-powered enterprise management solutions in forms of NFT generations, data record, share, and storage module subscriptions, etc. In addition, the company offers other e-commerce O2O advertising, and marketing and related value-added technical services. Additionally, it offers online-content production, distribution, promotion, and live streamer training and management services. The company was formerly known as ChinaNet Online Holdings, Inc. and changed its name to ZW Data Action Technologies Inc. in October 2020. Data Action Technologies Inc. was founded in 2003 and is based in Beijing, the People’s Republic of China.
About Similarweb
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.
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