Analyzing Semrush (NASDAQ:SEMR) and MiX Telematics (NYSE:MIXT)

MiX Telematics (NYSE:MIXT) and Semrush (NASDAQ:SEMR) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MiX Telematics	0	0	0	0	0.00
Semrush	0	2	5	1	2.88

Semrush has a consensus price target of $14.00, indicating a potential upside of 78.23%. Given Semrush’s stronger consensus rating and higher probable upside, analysts clearly believe Semrush is more favorable than MiX Telematics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MiX Telematics	3.72%	8.45%	5.11%
Semrush	3.29%	4.93%	3.29%

Insider and Institutional Ownership

45.7% of MiX Telematics shares are owned by institutional investors. Comparatively, 32.9% of Semrush shares are owned by institutional investors. 12.4% of MiX Telematics shares are owned by company insiders. Comparatively, 55.6% of Semrush shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares MiX Telematics and Semrush”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MiX Telematics	$150.06 million	2.36	$4.52 million	$0.25	58.20
Semrush	$413.96 million	2.82	$950,000.00	N/A	N/A

MiX Telematics has higher earnings, but lower revenue than Semrush.

Volatility and Risk

MiX Telematics has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Semrush has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500.

Summary

Semrush beats MiX Telematics on 9 of the 14 factors compared between the two stocks.

About MiX Telematics

MiX Telematics Limited, together with its subsidiaries, provides fleet and mobile asset management solutions through software-as-a-service (SaaS) delivery model. It offers MiX Fleet Manager, a commercial fleet management solution comprising MyMiX, an innovative driver engagement platform; MiX Vision, an on-road and in-vehicle video recording solution; MiX Rovi, an in-vehicle display and communications system; MiX RIBAS and DriveMate, an in-cab driving aid solution; MiX Hours of Service, which allows real-time monitoring and compliance; MiX Journey Management, an easy-to-use electronic alternative to paper-based systems; and MiX OEM Connect allows customer instant, direct integration to relevant, and powerful telematics data. The company provides MiX Asset Manager, asset tracking products including generators, light towers, storage tanks and pumps, and asset management solution for visibility of corporate assets; and Matrix, a suite of mobile asset management solutions for entry-level fleets and consumers, which offers real-time and historical vehicle tracking, and positioning, unauthorized vehicle use alerts, panic emergency response, crash alerts, driver behavior alerts, fuel tax logbooks, and vehicle maintenance notifications. In addition, it offers Beam-e, a crowdsourcing platform to locate vehicles without the expense of utilizing a traditional cellular network connection. The company delivers fleet and mobile asset management solutions as SaaS to 1,001,800 subscribers in South Africa, the Americas, the Middle East, Australia, Europe, and Brazil. MiX Telematics Limited was founded in 1996 and is headquartered in Boca Raton, Florida.

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.