Analyzing ZipRecruiter (NYSE:ZIP) and Grom Social Enterprises (NASDAQ:GROM)

ZipRecruiter (NYSE:ZIP) and Grom Social Enterprises (NASDAQ:GROM) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

ZipRecruiter has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Grom Social Enterprises has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Insider & Institutional Ownership

70.6% of ZipRecruiter shares are held by institutional investors. Comparatively, 15.9% of Grom Social Enterprises shares are held by institutional investors. 25.2% of ZipRecruiter shares are held by company insiders. Comparatively, 0.0% of Grom Social Enterprises shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares ZipRecruiter and Grom Social Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZipRecruiter	-7.35%	N/A	-5.58%
Grom Social Enterprises	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for ZipRecruiter and Grom Social Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZipRecruiter	1	4	0	0	1.80
Grom Social Enterprises	0	0	0	0	0.00

ZipRecruiter presently has a consensus price target of $4.00, indicating a potential upside of 35.82%. Given ZipRecruiter’s stronger consensus rating and higher possible upside, equities analysts plainly believe ZipRecruiter is more favorable than Grom Social Enterprises.

Earnings & Valuation

This table compares ZipRecruiter and Grom Social Enterprises”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZipRecruiter	$448.95 million	0.55	-$32.99 million	($0.35)	-8.41
Grom Social Enterprises	$3.72 million	0.00	-$12.53 million	($11.67)	0.00

Grom Social Enterprises has lower revenue, but higher earnings than ZipRecruiter. ZipRecruiter is trading at a lower price-to-earnings ratio than Grom Social Enterprises, indicating that it is currently the more affordable of the two stocks.

Summary

ZipRecruiter beats Grom Social Enterprises on 7 of the 12 factors compared between the two stocks.

About ZipRecruiter

ZipRecruiter, Inc. operates an online employment marketplace that connects job seekers and employers. Its platform provides various solutions, such as job posting, online interviews, job alerts, match scores, and application updates. The company was incorporated in 2010 and is based in Santa Monica, California.

About Grom Social Enterprises

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company in the United States and Philippines. It operates through three segments: Animation, Original Content, and Social and Technology. The company operates a social media network for children under the age of 13 years. It also produces animated films and televisions series; and provides web filtering services to schools and government agencies, as well as acquires, develops, and builds commercial potential of kids and family entertainment properties and associated business opportunities. Grom Social Enterprises, Inc. was founded in 2012 and is headquartered in Boca Raton, Florida.