Head-To-Head Survey: SEMrush (NYSE:SEMR) & Fatpipe Inc/UT (NASDAQ:FATN)

SEMrush (NYSE:SEMR) and Fatpipe Inc/UT (NASDAQ:FATN) are both small-cap services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings for SEMrush and Fatpipe Inc/UT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEMrush	1	5	0	0	1.83
Fatpipe Inc/UT	1	0	0	0	1.00

Institutional & Insider Ownership

32.9% of SEMrush shares are held by institutional investors. 55.6% of SEMrush shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares SEMrush and Fatpipe Inc/UT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEMrush	$376.82 million	4.68	$8.24 million	($0.02)	-591.00
Fatpipe Inc/UT	N/A	N/A	N/A	$0.07	24.57

SEMrush has higher revenue and earnings than Fatpipe Inc/UT. SEMrush is trading at a lower price-to-earnings ratio than Fatpipe Inc/UT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SEMrush and Fatpipe Inc/UT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SEMrush	-1.05%	-1.60%	-1.07%
Fatpipe Inc/UT	N/A	5.28%	3.27%

Summary

Fatpipe Inc/UT beats SEMrush on 5 of the 9 factors compared between the two stocks.

About SEMrush

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.

About Fatpipe Inc/UT

FatPipe is a pioneer in enterprise-class, application-aware, secure software-defined wide area network (“SD-WAN”) solutions for organizations, including enterprises, communication service providers, security service providers, government organizations, and middle-market companies. Organizations, large and small, have become increasingly dependent on their information technology (“IT”) network infrastructure for data access and communications, and the critical importance of network reliability, extensibility, and durability has continued to grow as the volume of traffic across those networks expands. The management, monitoring, and security of an organization’s network has become increasingly complicated in an era of growing demands from remote work, increasing connectivity points, and disparate operations, while network integrity is challenged by ever more sophisticated cyber threats. These factors are conspiring to increase an organization’s reliance on its computer networks while simultaneously making the management and maintenance of those networks more costly and complex. We are dedicated to continually improving the way organizations connect, ensuring their networks are secure, reliable, and support their continued success. Our commitment lies in empowering our customers with a seamless and dependable connectivity infrastructure that safeguards their critical data and fosters business continuity. We further aim to ensure our customers have unparalleled insights into their network operations. Through our integrated suite of software solutions, we offer our customers a reliable and secure platform to support mission-critical applications running on cloud, hybrid cloud and on-premise networks. Our core offerings include SD-WAN, secure access service edge (“SASE”), and network monitoring service (“NMS”) software solutions, each of which is typically offered to our customers as a subscription service. These solutions address a broad set of network management needs and include an integrated set of capabilities to automate the complex requirements of network optimization. The market for these network services is large, global in nature and growing at attractive rates. The total global market for SD-WAN solutions and services, our core offering, was estimated by the Maia Research Report to grow from $4.5 billion in 2022 to over $17.6 billion in 2030. The Maia Research Report also projects the total market size for SASE software and platforms to expand from $6.4 billion in 2022 to $27.2 billion in 2030, and the total market for NMS to grow from $2.0 billion to $4.4 billion over the same period. Each of these individual markets are expected to grow at a compounded rate of between 10% and 20% through 2030, with SD-WAN’s projected growth rate to be approximately 18.5% through 2030. Our principal executive office is located in Salt Lake City, UT.