Critical Analysis: Grid Dynamics (NASDAQ:GDYN) versus Obic (OTCMKTS:OBIIF)

Obic (OTCMKTS:OBIIF) and Grid Dynamics (NASDAQ:GDYN) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Valuation and Earnings

This table compares Obic and Grid Dynamics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Obic	$898.19 million	15.80	$496.26 million	$1.16	28.03
Grid Dynamics	$411.83 million	1.58	$9.67 million	$0.02	400.25

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

Profitability

This table compares Obic and Grid Dynamics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Obic	56.13%	15.65%	13.26%
Grid Dynamics	0.68%	1.90%	1.66%

Analyst Ratings

This is a summary of current ratings for Obic and Grid Dynamics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Obic	0	1	0	0	2.00
Grid Dynamics	2	1	4	1	2.50

Grid Dynamics has a consensus price target of $9.40, suggesting a potential upside of 17.43%. Given Grid Dynamics’ stronger consensus rating and higher possible upside, analysts clearly believe Grid Dynamics is more favorable than Obic.

Insider and Institutional Ownership

71.2% of Grid Dynamics shares are owned by institutional investors. 6.5% of Grid Dynamics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Obic has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Grid Dynamics has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Summary

Grid Dynamics beats Obic on 8 of the 15 factors compared between the two stocks.

About Obic

OBIC Co.,Ltd., together with its subsidiaries, provides system integration, system support, office automation, and package software services. It offers system integration services, including developing ERP software products to provide integrated administrative systems comprising personnel, payroll, working condition management, marketing, and production systems, as well as related training courses. The company also provides system support services, including system operation support and maintenance, and hardware maintenance. In addition, it offers office automation services, such as sale of package software, and peripheral equipment and supplies, as well as engages in processing of printed materials. The company was incorporated in 1968 and is headquartered in Tokyo, Japan.

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.