Critical Review: UiPath (NYSE:PATH) & Semrush (NASDAQ:SEMR)

Semrush (NASDAQ:SEMR) and UiPath (NYSE:PATH) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Profitability

This table compares Semrush and UiPath’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Semrush	4.39%	6.61%	4.42%
UiPath	-6.41%	-2.97%	-2.11%

Earnings and Valuation

This table compares Semrush and UiPath’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semrush	$307.67 million	6.50	$950,000.00	$0.09	153.00
UiPath	$1.35 billion	5.01	-$89.88 million	($0.16)	-74.06

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

Institutional & Insider Ownership

32.9% of Semrush shares are owned by institutional investors. Comparatively, 62.5% of UiPath shares are owned by institutional investors. 57.8% of Semrush shares are owned by company insiders. Comparatively, 22.4% of UiPath shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Semrush and UiPath, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semrush	0	3	3	0	2.50
UiPath	0	16	2	0	2.11

Semrush currently has a consensus target price of $14.33, suggesting a potential upside of 4.09%. UiPath has a consensus target price of $18.06, suggesting a potential upside of 52.40%. Given UiPath’s higher possible upside, analysts clearly believe UiPath is more favorable than Semrush.

Volatility and Risk

Semrush has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, UiPath has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Summary

Semrush beats UiPath on 11 of the 14 factors compared between the two stocks.

About Semrush

Semrush Holdings, Inc. develops an online visibility management software-as-a-service platform in the United States, the United Kingdom, and internationally. 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 serves small and midsize businesses, enterprises, and marketing agencies, including consumer internet, digital media, education, financial services, healthcare, retail, software, telecommunications, and others. Semrush Holdings, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.

About UiPath

UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric. It serves banking and financial services, healthcare, insurance, public sectors, manufacturing, retail, and telecom industries. The company was founded in 2005 and is headquartered in New York, New York.