Head to Head Survey: Semrush (NASDAQ:SEMR) & Smartsheet (NYSE:SMAR)

Smartsheet (NYSE:SMAR) and Semrush (NASDAQ:SEMR) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Earnings and Valuation

This table compares Smartsheet and Semrush”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smartsheet	$958.34 million	8.25	-$104.63 million	($0.06)	-941.17
Semrush	$376.82 million	3.44	$950,000.00	$0.05	176.50

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

Institutional & Insider Ownership

90.0% of Smartsheet shares are owned by institutional investors. Comparatively, 32.9% of Semrush shares are owned by institutional investors. 4.5% of Smartsheet shares are owned by company insiders. Comparatively, 57.8% of Semrush shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Smartsheet and Semrush’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smartsheet	-0.80%	2.33%	1.12%
Semrush	3.29%	4.93%	3.29%

Risk and Volatility

Smartsheet has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Semrush has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Smartsheet and Semrush, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smartsheet	0	16	1	0	2.06
Semrush	0	1	6	1	3.00

Smartsheet currently has a consensus target price of $57.00, suggesting a potential upside of 0.94%. Semrush has a consensus target price of $18.14, suggesting a potential upside of 105.58%. Given Semrush’s stronger consensus rating and higher probable upside, analysts clearly believe Semrush is more favorable than Smartsheet.

Summary

Semrush beats Smartsheet on 12 of the 15 factors compared between the two stocks.

About Smartsheet

Smartsheet, Inc. engages in managing and automating collaborative work. Its platform provides solutions that eliminate the obstacles to capturing information, including a familiar and intuitive spreadsheet interface as well as easily customizable forms. The company was founded by W. Eric Browne, Maria Colacurcio, John D. Creason and Brent R. Frei in June 2005 and is headquartered in Bellevue, WA.

About Semrush

Semrush Holdings, Inc. develops an online visibility management software-as-a-service platform in the United States, the United Kingdom, and internationally. The company enables companies to identify and reach the right audience for their content through the right channels. Its platform enables the company's customers to understand trends and act upon insights to enhance the online visibility, and drive traffic to their websites and social media pages, as well as online listings, distribute targeted content to their customers, and measure the digital marketing campaigns. The company serves small and midsize businesses, enterprises, and marketing agencies, including consumer internet, digital media, education, financial services, healthcare, retail, software, telecommunications, and others. Semrush Holdings, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.