Financial Survey: Grindr (NYSE:GRND) and Square Enix (OTCMKTS:SQNXF)

Grindr (NYSE:GRND) and Square Enix (OTCMKTS:SQNXF) are both mid-cap communication services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Grindr and Square Enix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grindr	18.75%	357.13%	20.08%
Square Enix	N/A	N/A	N/A

Earnings & Valuation

This table compares Grindr and Square Enix”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grindr	$439.90 million	6.09	$94.75 million	$0.50	30.81
Square Enix	$1.98 billion	3.52	$195.47 million	$0.75	25.73

Square Enix has higher revenue and earnings than Grindr. Square Enix is trading at a lower price-to-earnings ratio than Grindr, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Grindr and Square Enix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grindr	0	1	5	0	2.83
Square Enix	0	0	0	1	4.00

Grindr currently has a consensus price target of $20.00, indicating a potential upside of 29.84%. Given Grindr’s higher possible upside, equities research analysts clearly believe Grindr is more favorable than Square Enix.

Risk & Volatility

Grindr has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Square Enix has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Insider and Institutional Ownership

7.2% of Grindr shares are held by institutional investors. 60.9% of Grindr shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Grindr beats Square Enix on 9 of the 15 factors compared between the two stocks.

About Grindr

Grindr Inc. operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version. Grindr Inc. was founded in 2009 and is headquartered in West Hollywood, California.

About Square Enix

Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan and internationally. It operates through Digital Entertainment Business, Amusement Business, Publishing Business, and Rights Property Business. The company plans, develops, sells, and manages digital entertainment content primarily in the form of computer games. It is also involved in the operation of amusement facilities; and planning, development, manufacture, sale, and rental of arcade game machines and related products for amusement facilities. In addition, the company publishes and licenses comic books, magazines, game-related books, periodicals, etc. Further, it plans, produces, distributes, and licenses secondary works; and offers content under the SQUARE ENIX PRODUCTS brand; and stuffed toys and utility goods under the SQEX TOYS brand. The company was incorporated in 1975 and is headquartered in Tokyo, Japan.