Gravity (NASDAQ: GRVY) and Summer Infant (NASDAQ:SUMR) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Institutional and Insider Ownership
7.0% of Gravity shares are held by institutional investors. Comparatively, 49.7% of Summer Infant shares are held by institutional investors. 3.3% of Summer Infant shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Gravity and Summer Infant’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Gravity and Summer Infant’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Summer Infant||$194.33 million||0.11||-$4.32 million||($0.27)||-4.26|
Gravity has higher earnings, but lower revenue than Summer Infant. Summer Infant is trading at a lower price-to-earnings ratio than Gravity, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Gravity and Summer Infant, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Summer Infant has a consensus target price of $2.75, suggesting a potential upside of 139.13%. Given Summer Infant’s higher probable upside, analysts clearly believe Summer Infant is more favorable than Gravity.
Risk & Volatility
Gravity has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Summer Infant has a beta of -0.35, indicating that its stock price is 135% less volatile than the S&P 500.
Gravity beats Summer Infant on 8 of the 13 factors compared between the two stocks.
Gravity Company Profile
Gravity Co., Ltd. is a developer, distributor and publisher of online games in Japan and Taiwan. The Company’s segments include online games, mobile games and other. Its principal product includes Ragnarok Online, which is a multiplayer online role playing game. It categorizes products into over three categories, such as online games; mobile games and applications, and other games and game-related products and services, including character-based merchandise and animation. It offers over five online games, such as Ragnarok Online, Ragnarok Online II, Requiem, Dragonica (Dragon Saga) and R.O.S.E. Online, which are action adventure massively multiplayer online role-playing games (MMORPG). It develops mobile games, including Ragnarok Online-Uprising: Valkyrie, Ragnarok Online Mobile Story and Ragnarok Violet, and also publishes mobile games licensed from third parties. It provides games for game consoles and handheld game consoles, such as Nintendo DS, Xbox 360 and the PlayStation series.
Summer Infant Company Profile
Summer Infant, Inc. is an infant and juvenile products company. The Company is engaged in the juvenile industry, providing mothers and caregivers a range of products to care for babies and toddlers. As of December 31, 2016, it marketed over 1,100 products in several product categories, including monitoring, safety, nursery, baby gear and feeding products. It markets its products, under its Summer Infant, SwaddleMe and Born Free brand names. Its anchor products in its product categories include monitoring, such as wireless fidelity (Wi-Fi)/Internet, video, audio and prenatal; safety, including gates, bath, potties, boosters and positioners; nursery, such as swaddle, travel accessories, safe sleep, soothers and sleep aides; baby gear, including strollers, bassinets, high chairs and playards, and feeding products, such as bottles, drinking cups, bibs and placemats, electronics and pacifiers. It sells its products across the globe to national retailers, as well as independent retailers.
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