Similarweb (NYSE:SMWB) vs. System1 (NYSE:SST) Financial Contrast

System1 (NYSE:SST) and Similarweb (NYSE:SMWB) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Insider and Institutional Ownership

87.5% of System1 shares are held by institutional investors. Comparatively, 57.6% of Similarweb shares are held by institutional investors. 14.1% of System1 shares are held by company insiders. Comparatively, 62.4% of Similarweb shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares System1 and Similarweb”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
System1	$364.45 million	0.12	-$227.22 million	($1.21)	-0.41
Similarweb	$249.91 million	2.98	-$11.46 million	($0.14)	-64.46

Similarweb has lower revenue, but higher earnings than System1. Similarweb is trading at a lower price-to-earnings ratio than System1, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares System1 and Similarweb’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
System1	-24.18%	-68.85%	-18.27%
Similarweb	-4.58%	-47.62%	-5.03%

Risk and Volatility

System1 has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Similarweb has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for System1 and Similarweb, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
System1	0	1	1	0	2.50
Similarweb	0	0	9	1	3.10

System1 currently has a consensus price target of $3.50, indicating a potential upside of 612.83%. Similarweb has a consensus price target of $16.50, indicating a potential upside of 82.85%. Given System1’s higher probable upside, analysts clearly believe System1 is more favorable than Similarweb.

Summary

Similarweb beats System1 on 10 of the 15 factors compared between the two stocks.

About System1

System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.

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.