Comparing VTEX (NYSE:VTEX) and Similarweb (NYSE:SMWB)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Similarweb	-7.37%	-19.81%	-1.74%
VTEX	11.98%	12.98%	8.76%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Similarweb and VTEX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Similarweb	1	5	4	0	2.30
VTEX	0	6	3	0	2.33

Similarweb presently has a consensus target price of $10.14, indicating a potential upside of 21.20%. VTEX has a consensus target price of $4.69, indicating a potential upside of 32.60%. Given VTEX’s stronger consensus rating and higher possible upside, analysts plainly believe VTEX is more favorable than Similarweb.

Institutional and Insider Ownership

57.6% of Similarweb shares are owned by institutional investors. Comparatively, 63.7% of VTEX shares are owned by institutional investors. 40.9% of VTEX shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Similarweb and VTEX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Similarweb	$282.60 million	2.59	-$32.94 million	($0.25)	-33.48
VTEX	$240.52 million	2.51	$20.01 million	$0.16	22.09

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

Volatility and Risk

Similarweb has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, VTEX has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Summary

VTEX beats Similarweb 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 VTEX

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.