Amadeus IT Group (OTCMKTS:AMADY) & Grid Dynamics (NASDAQ:GDYN) Financial Survey

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grid Dynamics	2	2	4	0	2.25
Amadeus IT Group	2	1	4	0	2.29

Grid Dynamics currently has a consensus target price of $11.80, suggesting a potential downside of 11.81%. Given Grid Dynamics’ higher probable upside, equities analysts plainly believe Grid Dynamics is more favorable than Amadeus IT Group.

Volatility and Risk

Grid Dynamics has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Amadeus IT Group has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares Grid Dynamics and Amadeus IT Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grid Dynamics	1.81%	3.24%	2.83%
Amadeus IT Group	19.85%	30.93%	12.71%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grid Dynamics	$411.83 million	2.61	$9.67 million	$0.09	148.67
Amadeus IT Group	$7.37 billion	4.00	$1.51 billion	$3.61	18.94

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

Institutional & Insider 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, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Amadeus IT Group beats Grid Dynamics on 9 of the 13 factors compared between the two stocks.

About Grid Dynamics

Grid Dynamics Holdings, Inc. is a digital engineering and technology consulting company that helps businesses develop and modernize software, data platforms and digital products. Its services include cloud and data engineering, artificial intelligence and machine learning, application development, and digital commerce solutions. The company works with clients across industries to support technology strategy and implementation, including the design, development and operation of digital systems. Grid Dynamics was founded in 2006 and is headquartered in San Ramon, California, with delivery and client operations spanning North America, Europe and Asia.

About Amadeus IT Group

Amadeus IT Group is a travel technology company that develops software and transaction platforms for travel providers and sellers. Its services support functions such as travel search, reservations, booking, ticketing and management of travel operations. The company serves airlines, travel agencies, hotels, airports, rail operators and other participants in the travel industry. Its technology helps connect travel suppliers with distribution channels and supports providers’ operational and customer-facing systems.