Gen Digital (NASDAQ:GEN – Get Free Report) and Similarweb (NYSE:SMWB – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
Profitability
This table compares Gen Digital and Similarweb’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gen Digital | 23.07% | 57.97% | 9.36% |
| Similarweb | -7.37% | -19.81% | -1.74% |
Earnings and Valuation
This table compares Gen Digital and Similarweb”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gen Digital | $5.23 billion | 3.40 | $973.00 million | $1.99 | 14.93 |
| Similarweb | $295.61 million | 2.59 | -$32.94 million | ($0.25) | -35.02 |
Gen Digital has higher revenue and earnings than Similarweb. Similarweb is trading at a lower price-to-earnings ratio than Gen Digital, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for Gen Digital and Similarweb, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gen Digital | 0 | 7 | 1 | 1 | 2.33 |
| Similarweb | 1 | 4 | 5 | 1 | 2.55 |
Gen Digital currently has a consensus target price of $31.60, suggesting a potential upside of 6.36%. Similarweb has a consensus target price of $9.71, suggesting a potential upside of 10.96%. Given Similarweb’s stronger consensus rating and higher possible upside, analysts plainly believe Similarweb is more favorable than Gen Digital.
Volatility and Risk
Gen Digital has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Similarweb has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
Insider and Institutional Ownership
81.4% of Gen Digital shares are owned by institutional investors. Comparatively, 57.6% of Similarweb shares are owned by institutional investors. 9.7% of Gen Digital shares are owned by company insiders. Comparatively, 62.4% of Similarweb 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
Gen Digital beats Similarweb on 9 of the 14 factors compared between the two stocks.
About Gen Digital
Gen Digital Inc. engages in the provision of cyber safety solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company offers security and performance products under Norton, Avast, Avira, AVG, and CCleaner brands that provide real-time protection and maintenance for PCs, Macs, and mobile devices against malware, viruses, adware, and other online threats. It also provides identity protection solutions, including LifeLock Identity Theft Protection, Avast and AVG Secure Identity, Norton Identity Theft Protection, and Dark Web Monitoring for monitoring of credit reports, financial accounts, the dark web, and social media accounts to help safeguard customers’ personal information. In addition, the company offers Virtual Private Network (VPN) solutions under Norton, Avast and AVG brands to enhance security and online privacy that allows customers to securely transmit and access private information, such as passwords, bank details, and credit card numbers, when using public Wi-Fi on PCs, Macs, and mobile iOS and Android devices; AntiTrack and Secure Browser products which helps to keep personal information and browsing activity anonymous while browsing online; and Privacy Monitor Assistant and BreachGuard products for removing customers’ data from public data broker sites; and ReputationDefender, a white glove service that helps customers manage all aspects of their personal branding online, including search results, social media sites, and overall web presence. It markets and sells its products and related services through retailers, telecom service providers, hardware original equipment manufacturers, and employee benefit providers, as well as e-commerce platform. The company was formerly known as NortonLifeLock Inc. and changed its name to Gen Digital Inc. in November 2022. Gen Digital Inc. was founded in 1982 and is headquartered in Tempe, Arizona.
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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