Head-To-Head Review: Similarweb (NYSE:SMWB) & Genius Sports (NYSE:GENI)

Genius Sports (NYSE:GENI) and Similarweb (NYSE:SMWB) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Analyst Recommendations

This is a summary of recent ratings for Genius Sports and Similarweb, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genius Sports	2	3	14	3	2.82
Similarweb	1	1	9	0	2.73

Genius Sports presently has a consensus target price of $14.11, suggesting a potential upside of 42.58%. Similarweb has a consensus target price of $13.38, suggesting a potential upside of 74.20%. Given Similarweb’s higher possible upside, analysts plainly believe Similarweb is more favorable than Genius Sports.

Profitability

This table compares Genius Sports and Similarweb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genius Sports	-19.71%	-14.39%	-10.67%
Similarweb	-11.20%	-78.25%	-8.04%

Valuation & Earnings

This table compares Genius Sports and Similarweb”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genius Sports	$510.89 million	4.17	-$63.04 million	($0.47)	-21.06
Similarweb	$249.91 million	2.61	-$11.46 million	($0.37)	-20.75

Similarweb has lower revenue, but higher earnings than Genius Sports. Genius Sports is trading at a lower price-to-earnings ratio than Similarweb, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Genius Sports has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500. Comparatively, Similarweb has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Insider & Institutional Ownership

81.9% of Genius Sports shares are held by institutional investors. Comparatively, 57.6% of Similarweb shares are held by institutional investors. 16.6% of Genius Sports shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Genius Sports beats Similarweb on 9 of the 15 factors compared between the two stocks.

About Genius Sports

Genius Sports Limited engages in the development and sale of technology-led products and services to the sports, sports betting, and sports media industries. It offers technology infrastructure for the collection, integration, and distribution of live data of sports leagues; streaming solutions comprising technology, automatic production, and distribution for sports to commercialize video footage of their games; and end-to-end integrity services to sports leagues, such as full-time active monitoring technology, which uses mathematical algorithms to identify and flag suspicious betting activity in global betting markets, as well as a full suite of online and offline educational and consultancy services. The company also provides live sports data collection; pre-game and in-game odds feeds; risk management services, including customer profiling, monitoring of incoming bets, automated acceptance and rejection of bets, and limit setting; live streaming services; creation, delivery, and optimization of digital marketing campaigns, such as data-driven personalized ad creative; and fan engagement widgets for digital publishers that offer live game statistics and betting-related content. The company was founded in 2001 and is headquartered in London, the United Kingdom.

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.