Investors are comparing two distinct companies, Semrush (NASDAQ: SEMR) and Data443 Risk Mitigation (OTCMKTS: ATDSD), to determine which offers a better investment opportunity. A thorough analysis of their financial metrics shows that Semrush significantly outperforms Data443 across various parameters, including valuation, earnings, and profitability.
Earnings and Valuation Insights
Both companies present unique business models, but their financial performance varies considerably. Semrush, a leader in online visibility management, reported a consensus price target of $12.00, indicating a potential upside of 0.97%. In contrast, Data443, which specializes in data security and privacy management solutions, lacks a similar growth outlook.
When examining their earnings, Semrush has shown robust revenue growth, supported by a strong institutional ownership of 32.9%. This ownership suggests confidence among large investors that the company will continue to perform well in the market. Conversely, Data443 has 12.3% of its shares owned by insiders, while 55.6% of Semrush’s shares are held by insiders, reflecting a stronger alignment between the company’s management and its shareholders.
Profitability and Risk Assessment
Profitability metrics reveal a stark contrast between the two companies. Semrush boasts higher net margins and returns on equity and assets compared to Data443. This profitability indicates that Semrush is not only generating more revenue but is also more efficient in converting that revenue into profit.
In terms of volatility, Data443 presents an unusual situation with a beta of -4.77, suggesting its stock price is 577% less volatile than the S&P 500. This might imply that Data443 is a safer investment; however, it also raises questions about its growth potential. Semrush, on the other hand, has a beta of 1.54, indicating a 54% higher volatility compared to the S&P 500, which often correlates with higher returns in fast-growing markets.
Analysts generally favor Semrush over Data443, as indicated by its superior ratings and higher potential for price appreciation. The overall sentiment leans towards Semrush as a more favorable investment, backed by its stronger performance across all evaluated factors.
Data443 Risk Mitigation, founded in 1998 and headquartered in Research Triangle Park, North Carolina, focuses on various data management products. Its services cater to industries such as finance, healthcare, and telecommunications, providing solutions for ransomware recovery, data classification, and compliance with privacy regulations. The company has undergone rebranding, previously known as LandStar, before its name change in October 2017.
In contrast, Semrush Holdings, founded in 2008 and based in Boston, Massachusetts, provides a comprehensive software-as-a-service platform for managing online visibility. Its tools enable businesses to reach target audiences effectively and enhance their digital marketing efforts across various channels.
In summary, Semrush clearly outshines Data443 in critical investment metrics. With stronger institutional support, better profitability, and favorable analyst recommendations, it appears to be a more compelling option for investors looking to navigate the industrial sector.
