Reviewing Aware (NASDAQ:AWRE) & Similarweb (NYSE:SMWB)

Aware (NASDAQ:AWRE) and Similarweb (NYSE:SMWB) are both small-cap 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aware	$17.29 million	1.13	-$5.87 million	($0.40)	-2.24
Similarweb	$282.60 million	2.59	-$32.94 million	($0.25)	-33.37

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

Institutional and Insider Ownership

24.4% of Aware shares are held by institutional investors. Comparatively, 57.6% of Similarweb shares are held by institutional investors. 34.3% of Aware 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 Aware and Similarweb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aware	-51.92%	-35.21%	-24.33%
Similarweb	-7.37%	-19.81%	-1.74%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aware	1	0	0	0	1.00
Similarweb	1	4	5	1	2.55

Similarweb has a consensus price target of $9.71, indicating a potential upside of 16.45%. Given Similarweb’s stronger consensus rating and higher probable upside, analysts plainly believe Similarweb is more favorable than Aware.

Volatility & Risk

Aware has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Similarweb has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Summary

Similarweb beats Aware on 13 of the 15 factors compared between the two stocks.

About Aware

Aware, Inc., an authentication company, provides biometrics software products and solutions for government agencies and commercial entities in the United States, the United Kingdom, and internationally. The company offers biometric software solution, including Knomi, a mobile biometric framework which provides multiple biometric modality options; AwareABIS, an automated biometric identification system used for large-scale biometric identification and deduplication; AFIX suite used for small-scale law enforcement focused biometric identification; and AFIX Tracker for fingerprint, palmprint, and latent print identification, as well as AFIX Face, AFIX Verifier, AFIX Identifier, AFIX Comparator, AFIX Engine, and AFIX NIST Transaction Engine. It also provides BioSP, a biometric integration platform-as-a-service that enables biometric data processing and management functionality in a web services architecture; WebEnroll, a browser-based biometric enrollment and data management solution; and AwareID, a software-as-a-service that provides identity verification and continuous authentication capabilities. In addition, the company offers biometrics applications, such as Nexa line, a biometric search and match SDKs including Nexa Fingerprint, Nexa Face, Nexa Iris, and Nexa Voice; and AwareXM, an interoperable fingerprint matching SDK that provides fingerprint minutiae extraction, template generation, and fingerprint authentication. Further, it sells imaging products used in medical and advanced imaging application; and offers software maintenance, program management, and software engineering services. The company sells its products, services, and solutions through systems integrators, direct, and original equipment manufacturers and value added resellers channel. Aware, Inc. was incorporated in 1986 and is headquartered in Burlington, Massachusetts.

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.