Gridsum (GSUM) & Rapid7 (RPD) Critical Survey
Gridsum (NASDAQ: GSUM) and Rapid7 (NASDAQ:RPD) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Insider & Institutional Ownership
35.2% of Gridsum shares are owned by institutional investors. Comparatively, 71.6% of Rapid7 shares are owned by institutional investors. 56.9% of Rapid7 shares are owned by 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.
This is a summary of current ratings and price targets for Gridsum and Rapid7, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rapid7 has a consensus price target of $26.25, indicating a potential downside of 2.60%. Given Rapid7’s higher probable upside, analysts clearly believe Rapid7 is more favorable than Gridsum.
This table compares Gridsum and Rapid7’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Gridsum and Rapid7’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gridsum||$57.65 million||4.47||-$9.74 million||($0.72)||-14.21|
|Rapid7||$200.94 million||6.11||-$45.47 million||($1.07)||-25.19|
Gridsum has higher earnings, but lower revenue than Rapid7. Rapid7 is trading at a lower price-to-earnings ratio than Gridsum, indicating that it is currently the more affordable of the two stocks.
Rapid7 beats Gridsum on 7 of the 12 factors compared between the two stocks.
Gridsum Holding Inc. is a holding company. The Company provides data analysis software for multinational and domestic enterprises, and government agencies in China. The Company’s technology, the Gridsum Big Data Platform performs multi-dimensional correlation analysis and analyzes real-time events. The Company offers various types of solutions and technologies. The Company’s software products are designed for a range of commercial and governmental applications. The Company’s products focus on digital marketing analytics and automation solutions. The Company offers Web analytics solutions based on data warehouse technology to build solutions on a distributed data warehouse architecture, using the open-source Hadoop framework. The Company delivers its solutions as cloud-based software-as-a-service (SaaS) offerings that manage information technology (IT) support costs by outsourcing hardware and software maintenance and support.
Rapid7, Inc. is a provider analytics for security and information technology (IT) operations that enable organizations to implement an analytics-driven approach to cyber security and IT operations. The Company’s analytics enable organizations to contextualize and prioritize the threats facing their physical, virtual and cloud assets, including those posed by the behaviors of their users. Leveraging its IT data and analytics platform, its solutions enable organizations to manage their cyber security exposure and manage IT operations. Its solutions empower organizations to prevent attacks by providing visibility into vulnerabilities, and allow them to detect compromises, respond to breaches and correct the underlying causes of attacks. By providing a unified IT and security platform, with automated workflow, it enables IT and security to work together to develop, operate and secure their environment.
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