Grid Dynamics (NASDAQ:GDYN – Get Free Report) and Tucows (NASDAQ:TCX – Get Free Report) are both small-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Profitability
This table compares Grid Dynamics and Tucows’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grid Dynamics | 0.68% | 1.90% | 1.66% |
| Tucows | -21.20% | N/A | -9.48% |
Volatility and Risk
Grid Dynamics has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Tucows has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.
Earnings & Valuation
This table compares Grid Dynamics and Tucows”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grid Dynamics | $411.83 million | 1.70 | $9.67 million | $0.02 | 430.50 |
| Tucows | $390.30 million | 0.31 | -$75.82 million | ($7.53) | -1.42 |
Grid Dynamics has higher revenue and earnings than Tucows. Tucows is trading at a lower price-to-earnings ratio than Grid Dynamics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Grid Dynamics and Tucows, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grid Dynamics | 2 | 2 | 4 | 0 | 2.25 |
| Tucows | 1 | 0 | 0 | 0 | 1.00 |
Grid Dynamics currently has a consensus price target of $9.40, suggesting a potential upside of 9.18%. Given Grid Dynamics’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Grid Dynamics is more favorable than Tucows.
Insider & Institutional Ownership
71.2% of Grid Dynamics shares are owned by institutional investors. Comparatively, 73.6% of Tucows shares are owned by institutional investors. 6.5% of Grid Dynamics shares are owned by insiders. Comparatively, 8.4% of Tucows shares are owned by 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.
Summary
Grid Dynamics beats Tucows on 12 of the 14 factors compared between the two stocks.
About Grid Dynamics
Grid Dynamics Holdings, Inc., together with its subsidiaries, provides technology consulting, platform and product engineering, and analytics services in North America, Europe, and internationally. It offers cloud platform and product engineering services, such as architecting, designing, and building scalable and secure cloud-based platforms and business applications; and AI/machine learning and data platform engineering services that build platforms to facilitate batch and streaming data ingestion, quality governance, orchestration, semantic modeling, observability, and analysis at scale. The company provides digital engagement services, including digital ecosystem design and implementation; and supply chain, Internet of Thing, and advanced manufacturing, which focuses on transforming traditional operations into smart and connected ecosystems. It serves customers that operate in the tech, media, telecommunications, retail, consumer packaged goods, manufacturing, and finance industries. The company was formerly known as ChaSerg Technology Acquisition Corp. and changed its name to Grid Dynamics Holdings, Inc. Grid Dynamics Holdings, Inc. was founded in 2006 and is headquartered in San Ramon, California.
About Tucows
Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in North America and Europe. It operates in three segments: Ting, Wavelo and Tucows Domains. The Ting segment provides fiber and fixed wireless internet services. The Wavelo segment offers individual developer tools, subscription, billing management, network orchestration, and provisioning services. This segment also provides billing solutions under Platypus brand. The Tucows Domains segment offers name registration, as well as value added services under OpenSRS, eNom, Ascio, EPAG, and Hover brands. The company was formerly known as Infonautics, Inc. and changed its name to Tucows Inc. in August 2001. Tucows Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.
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