KLDiscovery (OTCMKTS:KLDI – Get Free Report) and Similarweb (NYSE:SMWB – Get Free Report) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.
Profitability
This table compares KLDiscovery and Similarweb’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KLDiscovery | -20.91% | N/A | -9.45% |
| Similarweb | -4.58% | -47.62% | -5.03% |
Insider & Institutional Ownership
20.4% of KLDiscovery shares are owned by institutional investors. Comparatively, 57.6% of Similarweb shares are owned by institutional investors. 31.6% of KLDiscovery shares are owned by insiders. Comparatively, 62.4% of Similarweb shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Analyst Ratings
This is a breakdown of recent recommendations and price targets for KLDiscovery and Similarweb, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KLDiscovery | 0 | 0 | 0 | 0 | 0.00 |
| Similarweb | 0 | 0 | 9 | 1 | 3.10 |
Similarweb has a consensus target price of $16.50, indicating a potential upside of 73.96%. Given Similarweb’s stronger consensus rating and higher possible upside, analysts plainly believe Similarweb is more favorable than KLDiscovery.
Earnings and Valuation
This table compares KLDiscovery and Similarweb”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KLDiscovery | $345.80 million | 0.00 | -$34.81 million | ($1.56) | -0.01 |
| Similarweb | $249.91 million | 3.07 | -$11.46 million | ($0.14) | -67.75 |
Similarweb has lower revenue, but higher earnings than KLDiscovery. Similarweb is trading at a lower price-to-earnings ratio than KLDiscovery, indicating that it is currently the more affordable of the two stocks.
Summary
Similarweb beats KLDiscovery on 12 of the 15 factors compared between the two stocks.
About KLDiscovery
KLDiscovery Inc. provides eDiscovery, information governance, and data recovery solutions to corporations, law firms, insurance companies, and individuals worldwide. The company offers Nebula, an end-to-end eDiscovery solution that facilitates smarter ways to cull, process, review, and manage documents in an intuitive interface; Client Portal for consolidated visualizations and reporting for portfolio intelligence; KLD Processing, a proprietary processing application; ReadySuite to perform extensive QC on a production, normalize inbound submissions, or spot check the work of a colleague or supplier; Relativity for relativity enhancements and state-of-the-art HIVE infrastructure; Nebula Processing to process data with a higher degree of quality; and Nebula AI, a technology assisted review tool combined with a deep bench of experts, as well as managed services, remote document review, and managed document review services. It also provides computer forensics, ransomware data recovery, remote collection manager, data recovery, and data collection services. In addition, the company offers Nebula Archive, an advanced archiving solution for modern enterprise data management needs at scale; Nebula Intelligent Archive, a digital communications compliance platform with machine learning and analytics; and Office 365 Migration and Management, as well as information governance and advisory services. Further, it provides Ontrack EasyRecovery that allows clients to perform precise file recovery of data lost through deletion, reformatting, and various other data loss scenarios; Ontrack PowerControls, a granular restore software product; email extraction, tape solutions, and data destruction solutions; and professional services. KLDiscovery Inc. was founded in 1985 and is headquartered in Eden Prairie, Minnesota.
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.
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