Financial Comparison: Gridsum Holding (GSUM) versus Its Competitors

Gridsum Holding (NASDAQ: GSUM) is one of 117 publicly-traded companies in the “Software” industry, but how does it compare to its rivals? We will compare Gridsum Holding to related businesses based on the strength of its profitability, valuation, analyst recommendations, dividends, earnings, risk and institutional ownership.

Profitability

This table compares Gridsum Holding and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gridsum Holding -26.87% -16.80% -10.15%
Gridsum Holding Competitors -45.84% -27.42% -9.69%

Institutional & Insider Ownership

37.0% of Gridsum Holding shares are held by institutional investors. Comparatively, 60.5% of shares of all “Software” companies are held by institutional investors. 17.8% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Gridsum Holding and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Gridsum Holding $57.65 million -$9.74 million -9.50
Gridsum Holding Competitors $2.28 billion $423.93 million 358.49

Gridsum Holding’s rivals have higher revenue and earnings than Gridsum Holding. Gridsum Holding is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Gridsum Holding and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gridsum Holding 0 0 0 0 N/A
Gridsum Holding Competitors 282 2090 4368 86 2.62

As a group, “Software” companies have a potential upside of 1.88%. Given Gridsum Holding’s rivals higher possible upside, analysts plainly believe Gridsum Holding has less favorable growth aspects than its rivals.

Volatility & Risk

Gridsum Holding has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Gridsum Holding’s rivals have a beta of 0.92, indicating that their average share price is 8% less volatile than the S&P 500.

Summary

Gridsum Holding rivals beat Gridsum Holding on 7 of the 9 factors compared.

About Gridsum Holding

Gridsum Holding Inc. is a holding company. The Company provides data analysis software for multinational and domestic enterprises, and government agencies in China. The Company’s technology, the Gridsum Big Data Platform performs multi-dimensional correlation analysis and analyzes real-time events. The Company offers various types of solutions and technologies. The Company’s software products are designed for a range of commercial and governmental applications. The Company’s products focus on digital marketing analytics and automation solutions. The Company offers Web analytics solutions based on data warehouse technology to build solutions on a distributed data warehouse architecture, using the open-source Hadoop framework. The Company delivers its solutions as cloud-based software-as-a-service (SaaS) offerings that manage information technology (IT) support costs by outsourcing hardware and software maintenance and support.

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