Contrasting Grab (NASDAQ:GRAB) & Upland Software (NASDAQ:UPLD)

Upland Software (NASDAQ:UPLD) and Grab (NASDAQ:GRAB) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Upland Software and Grab, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Upland Software	1	0	2	0	2.33
Grab	0	1	6	1	3.00

Upland Software currently has a consensus target price of $4.00, indicating a potential upside of 238.98%. Grab has a consensus target price of $6.47, indicating a potential upside of 55.94%. Given Upland Software’s higher possible upside, equities analysts clearly believe Upland Software is more favorable than Grab.

Insider and Institutional Ownership

77.8% of Upland Software shares are owned by institutional investors. Comparatively, 55.5% of Grab shares are owned by institutional investors. 14.8% of Upland Software shares are owned by insiders. Comparatively, 3.6% of Grab shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Upland Software has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Grab has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares Upland Software and Grab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Upland Software	-18.43%	-80.37%	6.38%
Grab	3.81%	1.91%	1.19%

Valuation & Earnings

This table compares Upland Software and Grab”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Upland Software	$274.79 million	0.12	-$112.73 million	($1.75)	-0.67
Grab	$2.80 billion	5.97	-$105.00 million	$0.04	103.75

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

Summary

Grab beats Upland Software on 10 of the 15 factors compared between the two stocks.

About Upland Software

Upland Software, Inc., together with its subsidiaries, provides cloud-based software applications under the Upland brand name in the United States, the United Kingdom, Canada, and internationally. It offers software applications that enable organizations to plan, manage and execute projects, and work in the areas of marketing, sales, contact center, knowledge management, project management, information technology, business operations, human resources, and legal. The company also provides professional services, such as implementation, data extraction, integration and configuration, and training services, as well as customer support services. It serves corporations, government agencies, and small and medium-sized businesses in the financial, consulting, technology, manufacturing, media, telecommunication, insurance, non-profit healthcare, life sciences, retail, and hospitality sectors. The company was formerly known as Silverback Enterprise Group, Inc. and changed its name to Upland Software, Inc. in November 2013. Upland Software, Inc. was incorporated in 2010 and is headquartered in Austin, Texas.

About Grab

Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.