Financial Analysis: Similarweb (NYSE:SMWB) & Rediff.com India (OTCMKTS:REDFY)

Rediff.com India (OTCMKTS:REDFY) and Similarweb (NYSE:SMWB) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Rediff.com India and Similarweb, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rediff.com India	0	0	0	0	0.00
Similarweb	1	6	4	0	2.27

Similarweb has a consensus price target of $8.14, suggesting a potential upside of 201.59%. Given Similarweb’s stronger consensus rating and higher probable upside, analysts plainly believe Similarweb is more favorable than Rediff.com India.

Earnings and Valuation

This table compares Rediff.com India and Similarweb”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rediff.com India	N/A	N/A	N/A	N/A	N/A
Similarweb	$282.60 million	0.81	-$32.94 million	($0.39)	-6.92

Rediff.com India has higher earnings, but lower revenue than Similarweb.

Volatility and Risk

Rediff.com India has a beta of 16.56, suggesting that its stock price is 1,556% more volatile than the S&P 500. Comparatively, Similarweb has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Insider and Institutional Ownership

57.6% of Similarweb shares are held by institutional investors. 70.7% of Rediff.com India shares are held by insiders. Comparatively, 62.4% of Similarweb shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Rediff.com India and Similarweb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rediff.com India	N/A	N/A	N/A
Similarweb	-11.65%	-70.38%	-6.80%

About Rediff.com India

Rediff.com India Limited engages in the online business in India and to the global Indian community. The company delivers news and information, enterprise email services, online shopping marketplace, and internet-based local TV advertising platform; and online advertising services. Its websites consist of information relating to sports and cricket; life style and movies; content on news, business, and finance; and search facilities, as well as a range of community features, including as e-mail and shopping. The company delivers its services on PCs, tablets, and various mobile platforms. Rediff.com India Limited was incorporated in 1996 and is headquartered in Mumbai, India.

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.