Head-To-Head Contrast: SEMrush (NYSE:SEMR) versus Doximity (NYSE:DOCS)

Doximity (NYSE:DOCS) and SEMrush (NYSE:SEMR) are both services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Valuation & Earnings

This table compares Doximity and SEMrush”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Doximity	$570.40 million	6.84	$223.18 million	$1.20	17.60
SEMrush	$443.64 million	4.06	-$18.96 million	($0.11)	-108.59

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

Volatility & Risk

Doximity has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, SEMrush has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Doximity and SEMrush, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	1	6	13	2	2.73
SEMrush	1	7	0	0	1.88

Doximity currently has a consensus target price of $43.95, indicating a potential upside of 108.14%. SEMrush has a consensus target price of $10.80, indicating a potential downside of 9.59%. Given Doximity’s stronger consensus rating and higher probable upside, research analysts clearly believe Doximity is more favorable than SEMrush.

Profitability

This table compares Doximity and SEMrush’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Doximity	37.54%	23.84%	20.42%
SEMrush	-4.27%	-3.19%	-2.12%

Institutional and Insider Ownership

87.2% of Doximity shares are owned by institutional investors. Comparatively, 32.9% of SEMrush shares are owned by institutional investors. 31.3% of Doximity 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 is poised for long-term growth.

Summary

Doximity beats SEMrush on 13 of the 15 factors compared between the two stocks.

About Doximity

Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company’s cloud-based platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers. It primarily serves pharmaceutical companies and health systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

About SEMrush

Semrush Holdings, Inc. develops an online visibility management software-as-a-service platform worldwide. 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 was founded in 2008 and is headquartered in Boston, Massachusetts.