Semrush (NASDAQ:SEMR) vs. Rapid7 (NASDAQ:RPD) Financial Analysis


Rapid7 (NASDAQ:RPD – Get Rating) and Semrush (NASDAQ:SEMR – Get Rating) are both IT and technology companies, but which is the better company? We’ll compare the two companies based on their risk strength, valuation, profitability, earnings, analyst recommendations, institutional ownership, and dividends.

Institutional and Insider Ownership

98.0% of Rapid7 shares are held by institutional investors. Comparatively, 15.1% of Semrush shares are held by institutional investors. 3.6% of Rapid7 shares are held by insiders of the company. Comparatively, 61.9% of Semrush shares are held by company insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company is poised for long-term growth.

Analyst Notes

This is a breakdown of the current recommendations for Rapid7 and Semrush, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Quick7 0 3 12 0 2.80
Semrush 0 2 3 0 2.60

Rapid7 currently has a consensus target price of $132.40, indicating a potential upside of 39.80%. Semrush has a consensus target price of $19.60, indicating a potential upside of 84.04%. Given Semrush’s likely higher upside, analysts clearly believe that Semrush is more favorable than Rapid7.

Volatility and risk

Rapid7 has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. By comparison, Semrush has a beta of 2.52, indicating that its stock price is 152% more volatile than the S&P 500.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of Rapid7 and Semrush.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Quick7 $535.40 million 10:30 a.m. -$146.33 million ($2.64) -35.88
Semrush $188.00 million 7.99 -$3.29 million ($0.02) -532.50

Semrush has lower earnings, but higher earnings than Rapid7. Semrush is trading at a lower price-to-earnings ratio than Rapid7, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity, and return on assets of Rapid7 and Semrush.

Net margins Return on equity return on assets
Quick7 -27.33% N / A -8.41%
Semrush -1.75% -1.98% -1.42%

Rapid7 Company Profile (Get a rating)

Rapid7, Inc. provides cybersecurity solutions. The company offers a cloud-native information platform that enables customers to create and manage analytics-based cybersecurity risk management programs. Its platform includes InsightIDR, an incident detection and response solution; InsightCloudSec, a solution that integrates posture management, workload protection, infrastructure entitlement management, infrastructure-as-code security, and Kubernetes protection; InsightVM, a vulnerability risk management solution designed to provide a way to collect vulnerability data, prioritize risk, and automate remediation; InsightAppSec, which provides application security testing that scans web applications for security vulnerabilities; and InsightConnect, a security orchestration and automated response solution used by security professionals. The company’s other products include DivvyCloud, a cloud-based security posture management solution; Nexpose, an on-premises version of the enterprise’s vulnerability risk management solution; AppSpider, an on-premises version of the company’s application security testing solution; and Metasploit, a penetration testing software solution, as well as professional services. It offers its products as term or perpetual software licenses, cloud-based subscriptions and managed services. The company serves customers in a range of industries, including technology, energy, financial services, healthcare and life sciences, manufacturing, media and entertainment, retail, education, real estate, transportation, government, and professional services through sales and indirect teams. relationships with distribution partners, as well as directly in the Americas, Europe, the Middle East, Africa and Asia-Pacific. The company was incorporated in 2000 and is based in Boston, Massachusetts.

Semrush Company Profile (Get a rating)

Semrush Holdings, Inc. develops software platform as a service for managing online visibility worldwide. The company enables businesses to identify and reach the right audience for their content through the right channels. Its platform enables the company’s clients to understand trends and act on the information to improve 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 digital marketing campaigns. The company was founded in 2008 and is based in Boston, Massachusetts.



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Sarah J. Greer