Critical Analysis: SEMrush (SEMR) & Its Peers

SEMrush (NYSE:SEMR) is one of 43 publicly-traded companies in the “Services – Computer Programming And Data Processing” industry, but how does it contrast to its competitors? We will compare SEMrush to related businesses based on the strength of its risk, dividends, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
SEMrush	$376.82 million	$8.24 million	-596.50
SEMrush Competitors	$257.93 million	-$40.93 million	-9.89

SEMrush has higher revenue and earnings than its competitors. SEMrush 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.

Volatility & Risk

SEMrush has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, SEMrush’s competitors have a beta of 0.77, suggesting that their average share price is 23% less volatile than the S&P 500.

Insider & Institutional Ownership

32.9% of SEMrush shares are held by institutional investors. Comparatively, 57.1% of shares of all “Services – Computer Programming And Data Processing” companies are held by institutional investors. 55.6% of SEMrush shares are held by insiders. Comparatively, 16.2% of shares of all “Services – Computer Programming And Data Processing” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SEMrush	-1.05%	-1.60%	-1.07%
SEMrush Competitors	-53.73%	-1,002.64%	-68.20%

Analyst Recommendations

This is a breakdown of current ratings for SEMrush and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEMrush	1	5	0	0	1.83
SEMrush Competitors	86	185	205	9	2.28

As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 72.16%. Given SEMrush’s competitors stronger consensus rating and higher possible upside, analysts clearly believe SEMrush has less favorable growth aspects than its competitors.

Summary

SEMrush beats its competitors on 7 of the 13 factors compared.

SEMrush Company Profile

Semrush Holdings, Inc. develops an online visibility management software-as-a-service platform worldwide. The company enables companies to identify and reach the right audience for their content through the right channels. Its platform enables the company’s customers to understand trends and act upon insights to enhance the online visibility, and drive traffic to their websites and social media pages, as well as online listings, distribute targeted content to their customers, and measure the digital marketing campaigns. The company was founded in 2008 and is headquartered in Boston, Massachusetts.