Analyzing Luokung Technology (NASDAQ:LKCO) & Semantix (NASDAQ:STIX)

Luokung Technology (NASDAQ:LKCO) and Semantix (NASDAQ:STIX) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Institutional and Insider Ownership

14.6% of Luokung Technology shares are held by institutional investors. Comparatively, 40.1% of Semantix shares are held by institutional investors. 11.7% of Luokung Technology shares are held by company insiders. Comparatively, 35.5% of Semantix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Luokung Technology and Semantix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luokung Technology	0	0	0	0	N/A
Semantix	0	0	0	0	N/A

Valuation and Earnings

This table compares Luokung Technology and Semantix’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luokung Technology	$93.59 million	N/A	-$52.54 million	N/A	N/A
Semantix	$264.23 million	0.03	-$63.61 million	($0.81)	-0.11

Luokung Technology has higher earnings, but lower revenue than Semantix.

Profitability

This table compares Luokung Technology and Semantix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luokung Technology	N/A	N/A	N/A
Semantix	-69.49%	-45.45%	-26.98%

Risk & Volatility

Luokung Technology has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Semantix has a beta of -0.37, meaning that its stock price is 137% less volatile than the S&P 500.

Summary

Luokung Technology beats Semantix on 5 of the 8 factors compared between the two stocks.

About Luokung Technology

Luokung Technology Corp., together with its subsidiaries, engages in the provision of location-based services and mobile application products for long distance rail travelers in the People's Republic of China. It offers Luokuang mobile application, which provides business to customer (B2C) location-based services; and SuperEngine that offers business to business (B2B) and business to government (B2G) services in connection with spatial-temporal big data processing. The company also provides Luokung software development kits and application-programming interfaces, which provide spatial-temporal big data analysis and customized map to software and mobile application developers; and spatial temporal indexing cloud service, a data-level virtualization technology. In addition, it offers information SuperEngine that includes the server engine, which enables to store, manage, and index the spatial temporal big data on the server side; and Web graphics image engine that supports transmission of graphics images, as well as display and edge computing for multi-terminal and cross-platform. Further, the company provides spatial temporal cloud platform, which offers cloud services, including data storage, data resource, and platform support services, as well as supports users to aggregate multi-source spatial data, map services, and Internet of Things streaming data; HD Map, an infrastructural component in smart transportation, autonomous driving, and smart cities; and autonomous driving enabling services. Luokung Technology Corp. was incorporated in 2009 and is headquartered in Beijing, China.

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.