Semantix (NASDAQ:STIX – Get Free Report) and Thoughtworks (NASDAQ:TWKS – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Analyst Ratings
This is a summary of recent ratings and target prices for Semantix and Thoughtworks, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Semantix | 0 | 0 | 0 | 0 | N/A |
| Thoughtworks | 1 | 8 | 1 | 0 | 2.00 |
Thoughtworks has a consensus target price of $4.18, suggesting a potential downside of 5.54%. Given Thoughtworks’ higher possible upside, analysts clearly believe Thoughtworks is more favorable than Semantix.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Semantix | $264.23 million | 0.00 | -$63.61 million | ($0.81) | 0.00 |
| Thoughtworks | $1.13 billion | 1.27 | -$68.66 million | ($0.29) | -15.24 |
Semantix has higher earnings, but lower revenue than Thoughtworks. Thoughtworks is trading at a lower price-to-earnings ratio than Semantix, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Semantix and Thoughtworks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Semantix | -69.49% | -45.45% | -26.98% |
| Thoughtworks | -11.20% | -5.81% | -3.42% |
Insider and Institutional Ownership
40.1% of Semantix shares are held by institutional investors. Comparatively, 32.8% of Thoughtworks shares are held by institutional investors. 35.5% of Semantix shares are held by company insiders. Comparatively, 2.3% of Thoughtworks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Semantix has a beta of -0.37, meaning that its stock price is 137% less volatile than the S&P 500. Comparatively, Thoughtworks has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.
Summary
Thoughtworks beats Semantix on 9 of the 13 factors compared between the two stocks.
About Semantix
Semantix, Inc., together with its subsidiaries, provides end-to-end proprietary Software as a Service (SaaS) data platform in Latin America and the United States. The company offers SDP, a multi-cloud SaaS data platform that provides data integration, data operations, machine learning operations, data governance, data sharing, and data visualization for financial institutions; healthcare plans operators, health insurance brokers, hospitals, clinics, and imaging and diagnostics facilities; and retailers. It also sells third-party software licenses to the finance, retail, telecommunications, healthcare, industrials, and other sectors. In addition, the company offers artificial intelligence and data analytics services, including consulting, cloud monitoring, data integration, data science, and data engineering. The company was founded in 2010 and is based in São Paulo, Brazil.
About Thoughtworks
Thoughtworks Holding, Inc. provides technology consultancy services in North America, the Asia Pacific, Europe, and Latin America. The company's consultancy services integrate strategy, design, and software engineering to enable enterprises and technology disruptors to thrive as modern digital businesses. It offers enterprise modernization, platforms, and cloud services, including modernization strategy and execution, digital platform strategy and engineering organization transformation, cloud modernization, cloud-native application support and evolution, and platform assessment and remediation; and customer experience, product, and design services comprising idea to market, customer experience strategy, product management transformation, and product design and delivery. The company also provides data and artificial intelligence services, such as data strategy, intelligent products, data platforms and data mesh, continuous delivery for machine learning, and data governance; digital transformation and operations services, which include delivery transformation, digital fluency, organization transformation, value-driven portfolio management, technology strategy, executive advisory, and digital foundations training; and DAMO managed services. It serves its clients in various industry verticals, including technology and business services; energy, public, and health services; retail and consumer; financial services and insurance; and automotive, travel, and transportation. The company was incorporated in 1993 and is headquartered in Chicago, Illinois.
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