Cognyte Software (NASDAQ:CGNT – Get Rating) and Semrush (NASDAQ:SEMR – Get Rating) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Profitability
This table compares Cognyte Software and Semrush's net margins, return on equity and return on assets.
Get Cognyte Software alerts:| Net Margins | Return on Equity | Return on Assets | |
| Cognyte Software | -9.17% | -23.12% | -11.38% |
| Semrush | -6.88% | -7.50% | -5.43% |
Insider & Institutional Ownership
84.2% of Cognyte Software shares are owned by institutional investors. Comparatively, 15.1% of Semrush shares are owned by institutional investors. 62.7% of Cognyte Software shares are owned by company insiders. Comparatively, 61.9% of Semrush shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Cognyte Software has a beta of 2.24, meaning that its share price is 124% more volatile than the S&P 500. Comparatively, Semrush has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.Valuation and Earnings
This table compares Cognyte Software and Semrush's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cognyte Software | $474.04 million | 0.69 | -$14.89 million | ($0.61) | -8.00 |
| Semrush | $188.00 million | 10.08 | -$3.29 million | ($0.11) | -122.00 |
Semrush has lower revenue, but higher earnings than Cognyte Software. Semrush is trading at a lower price-to-earnings ratio than Cognyte Software, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for Cognyte Software and Semrush, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cognyte Software | 0 | 3 | 2 | 0 | 2.40 |
| Semrush | 0 | 3 | 3 | 0 | 2.50 |
Cognyte Software presently has a consensus target price of $13.25, indicating a potential upside of 171.52%. Semrush has a consensus target price of $16.67, indicating a potential upside of 24.19%. Given Cognyte Software's higher possible upside, analysts clearly believe Cognyte Software is more favorable than Semrush.
Summary
Semrush beats Cognyte Software on 8 of the 14 factors compared between the two stocks.
About Cognyte Software
(Get Rating)
Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide. Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations. The company also offers network intelligence analytics, open source and threat intelligence analytics, and operational intelligence analytics solutions. Its solutions are designed to support various use cases and support a range of users, including data analysts, investigation managers, and security operations center operators, as well as operational field teams. In addition, the company provides customer support, professional, and integration services. Its government customers include national, regional, and local government agencies; and enterprise customers consist of commercial and physical security customers. The company was incorporated in 2020 and is headquartered in Herzliya, Israel.
About Semrush
(Get Rating)
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.
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