Head to Head Contrast: Doximity (NYSE:DOCS) versus SEMrush (NYSE:SEMR)

SEMrush (NYSE:SEMR) and Doximity (NYSE:DOCS) are both services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Institutional and Insider Ownership

32.9% of SEMrush shares are owned by institutional investors. Comparatively, 87.2% of Doximity shares are owned by institutional investors. 55.6% of SEMrush shares are owned by insiders. Comparatively, 31.3% of Doximity shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares SEMrush and Doximity”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEMrush	$443.64 million	4.07	-$18.96 million	($0.11)	-108.68
Doximity	$570.40 million	6.97	$223.18 million	$1.20	17.93

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

Volatility and Risk

SEMrush has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Doximity has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Profitability

This table compares SEMrush and Doximity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SEMrush	-4.27%	-3.19%	-2.12%
Doximity	37.54%	23.84%	20.42%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for SEMrush and Doximity, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEMrush	1	7	0	0	1.88
Doximity	1	6	13	2	2.73

SEMrush presently has a consensus target price of $10.80, indicating a potential downside of 9.66%. Doximity has a consensus target price of $44.26, indicating a potential upside of 105.78%. Given Doximity’s stronger consensus rating and higher probable upside, analysts plainly believe Doximity is more favorable than SEMrush.

Summary

Doximity beats SEMrush on 13 of the 15 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 Doximity

Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company’s cloud-based platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers. It primarily serves pharmaceutical companies and health systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.