Similarweb (NYSE:SMWB) vs. Weibo (NASDAQ:WB) Critical Review

Similarweb (NYSE:SMWB) and Weibo (NASDAQ:WB) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Institutional and Insider Ownership

57.6% of Similarweb shares are held by institutional investors. Comparatively, 68.8% of Weibo shares are held by institutional investors. 41.3% of Weibo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Similarweb	0	1	9	0	2.90
Weibo	0	1	1	0	2.50

Similarweb presently has a consensus price target of $14.88, suggesting a potential upside of 53.35%. Weibo has a consensus price target of $14.00, suggesting a potential upside of 14.01%. Given Similarweb’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Similarweb is more favorable than Weibo.

Valuation and Earnings

This table compares Similarweb and Weibo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Similarweb	$249.91 million	3.29	-$11.46 million	($0.35)	-27.71
Weibo	$1.75 billion	1.70	$300.80 million	$1.43	8.59

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

Volatility and Risk

Similarweb has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Weibo has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Similarweb	-10.84%	-88.03%	-9.36%
Weibo	21.10%	12.65%	6.87%

Summary

Weibo beats Similarweb on 9 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 Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, discover, and distribute content in the People’s Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted marketing offerings, such as Fans Headline and Weibo Express promoted feeds, as well as promoted trends and search products that appear alongside user’s trends discovery and search behaviors. In addition, the company offers products, such as trends, search, video/live streaming, and editing tools; content customization, copyright contents pooling, and user interaction development; and search list recommendation, trends list recommendation, and Weibo app opening advertisements. Further, it provides back-end management, traffic support, and product services for better displaying and promotion of its account and content; open application platform for other app developers that allows users to log into third-party applications with their Weibo account for sharing third-party content on its platform; and Weibo Wallet, a product that enables platform partners to conduct interest generation activities on Weibo, such as handing out red envelops and coupons. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, the People’s Republic of China.