Analyzing Information Analysis (OTCMKTS:IAIC) and Semrush (NASDAQ:SEMR)

Semrush (NASDAQ:SEMR) and Information Analysis (OTCMKTS:IAIC) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Semrush and Information Analysis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semrush	0	5	0	0	2.00
Information Analysis	0	0	0	0	0.00

Semrush currently has a consensus price target of $10.80, suggesting a potential downside of 8.59%. Given Information Analysis’ higher probable upside, analysts clearly believe Information Analysis is more favorable than Semrush.

Valuation and Earnings

This table compares Semrush and Information Analysis”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semrush	$428.63 million	4.11	$950,000.00	($0.02)	-590.75
Information Analysis	$13.90 million	0.00	$410,000.00	$0.04	N/A

Semrush has higher revenue and earnings than Information Analysis. Semrush is trading at a lower price-to-earnings ratio than Information Analysis, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Semrush and Information Analysis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Semrush	3.29%	4.93%	3.29%
Information Analysis	3.72%	18.48%	9.33%

Volatility & Risk

Semrush has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Information Analysis has a beta of 3.25, indicating that its share price is 225% more volatile than the S&P 500.

Institutional & Insider Ownership

32.9% of Semrush shares are held by institutional investors. 55.6% of Semrush shares are held by company insiders. Comparatively, 23.8% of Information Analysis shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

About Semrush

Semrush Holdings, Inc. develops an online visibility management software-as-a-service platform in the United States, the United Kingdom, and internationally. 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 serves small and midsize businesses, enterprises, and marketing agencies, including consumer internet, digital media, education, financial services, healthcare, retail, software, telecommunications, and others. Semrush Holdings, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.

About Information Analysis

Information Analysis, Inc. provides information technology services. The firm engages in the business of modernizing client information systems, developing and maintaining information technology systems, and performing consulting services to government and commercial organizations. It specializes in legacy systems modernization, ebusiness solutions, enterprise portals, system migration and re-hosting services, and enterprise application integration. The company was founded by Sandor Rosenberg in 1979 and is headquartered in Fairfax, VA.