Financial Survey: Similarweb (NYSE:SMWB) & Tucows (NASDAQ:TCX)

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

Volatility & Risk

Similarweb has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Tucows has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Institutional and Insider Ownership

57.6% of Similarweb shares are held by institutional investors. Comparatively, 73.6% of Tucows shares are held by institutional investors. 62.4% of Similarweb shares are held by insiders. Comparatively, 9.4% of Tucows 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.

Analyst Recommendations

This is a summary of recent recommendations for Similarweb and Tucows, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Similarweb	1	7	3	0	2.18
Tucows	1	0	0	0	1.00

Similarweb presently has a consensus price target of $7.07, indicating a potential upside of 70.56%. Given Similarweb’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Similarweb is more favorable than Tucows.

Profitability

This table compares Similarweb and Tucows’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Similarweb	-10.38%	-48.57%	-4.45%
Tucows	-20.08%	N/A	-9.18%

Valuation and Earnings

This table compares Similarweb and Tucows”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Similarweb	$282.60 million	1.29	-$32.94 million	($0.35)	-11.85
Tucows	$390.30 million	0.43	-$75.82 million	($7.10)	-2.14

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

Summary

Similarweb beats Tucows on 10 of the 14 factors compared between the two stocks.

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.

About Tucows

Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in North America and Europe. It operates in three segments: Ting, Wavelo and Tucows Domains. The Ting segment provides fiber and fixed wireless internet services. The Wavelo segment offers individual developer tools, subscription, billing management, network orchestration, and provisioning services. This segment also provides billing solutions under Platypus brand. The Tucows Domains segment offers name registration, as well as value added services under OpenSRS, eNom, Ascio, EPAG, and Hover brands. The company was formerly known as Infonautics, Inc. and changed its name to Tucows Inc. in August 2001. Tucows Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.