Reviewing Similarweb (NYSE:SMWB) and Magnite (NASDAQ:MGNI)

Similarweb (NYSE:SMWB) and Magnite (NASDAQ:MGNI) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Similarweb and Magnite, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Similarweb	0	0	9	1	3.10
Magnite	0	1	12	0	2.92

Similarweb presently has a consensus price target of $13.50, suggesting a potential downside of 13.42%. Magnite has a consensus price target of $18.35, suggesting a potential upside of 18.82%. Given Magnite’s higher probable upside, analysts plainly believe Magnite is more favorable than Similarweb.

Volatility & Risk

Similarweb has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Magnite has a beta of 2.51, indicating that its share price is 151% more volatile than the S&P 500.

Valuation and Earnings

This table compares Similarweb and Magnite”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Similarweb	$218.02 million	5.79	-$29.37 million	($0.11)	-141.75
Magnite	$661.13 million	3.29	-$159.18 million	$0.06	257.33

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Similarweb	-3.92%	-44.83%	-4.16%
Magnite	2.62%	4.64%	1.25%

Insider & Institutional Ownership

57.6% of Similarweb shares are owned by institutional investors. Comparatively, 73.4% of Magnite shares are owned by institutional investors. 4.3% of Magnite shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Magnite beats Similarweb on 11 of the 15 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 Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.