Contrasting Grom Social Enterprises (NASDAQ:GROM) & DouYu International (NASDAQ:DOYU)

Grom Social Enterprises (NASDAQ:GROMGet Rating) and DouYu International (NASDAQ:DOYUGet Rating) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Grom Social Enterprises -198.34% -45.98% -34.32%
DouYu International -6.01% -8.26% -6.36%

Insider & Institutional Ownership

4.4% of Grom Social Enterprises shares are held by institutional investors. Comparatively, 19.5% of DouYu International shares are held by institutional investors. 9.3% of Grom Social Enterprises shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Grom Social Enterprises and DouYu International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Grom Social Enterprises $6.30 million 1.75 -$10.15 million N/A N/A
DouYu International $1.44 billion 0.30 -$91.31 million ($0.25) -5.44

Grom Social Enterprises has higher earnings, but lower revenue than DouYu International.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Grom Social Enterprises and DouYu International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grom Social Enterprises 0 0 1 0 3.00
DouYu International 3 1 0 0 1.25

DouYu International has a consensus price target of $2.48, indicating a potential upside of 81.99%. Given DouYu International’s higher possible upside, analysts plainly believe DouYu International is more favorable than Grom Social Enterprises.

Summary

DouYu International beats Grom Social Enterprises on 6 of the 11 factors compared between the two stocks.

About Grom Social Enterprises (Get Rating)

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company that focuses on delivering content in the United States. 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 and develops kids and family entertainment properties and related business opportunities. The company was founded in 2012 and is headquartered in Boca Raton, Florida.

About DouYu International (Get Rating)

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors eSports teams and organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and allows viewers and streamers to edit and upload short video clips by themselves. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, China.

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