Financial Contrast: Grom Social Enterprises (NASDAQ:GROM) versus Bumble (NASDAQ:BMBL)

Grom Social Enterprises (NASDAQ:GROM) and Bumble (NASDAQ:BMBL) 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 valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Grom Social Enterprises and Bumble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grom Social Enterprises	N/A	N/A	N/A
Bumble	-54.19%	3.31%	2.06%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Grom Social Enterprises and Bumble, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grom Social Enterprises	0	0	0	0	0.00
Bumble	1	16	2	0	2.05

Bumble has a consensus price target of $6.71, indicating a potential upside of 17.24%. Given Bumble’s stronger consensus rating and higher probable upside, analysts plainly believe Bumble is more favorable than Grom Social Enterprises.

Institutional & Insider Ownership

15.9% of Grom Social Enterprises shares are held by institutional investors. Comparatively, 94.8% of Bumble shares are held by institutional investors. 0.0% of Grom Social Enterprises shares are held by company insiders. Comparatively, 15.8% of Bumble shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Grom Social Enterprises and Bumble”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grom Social Enterprises	$3.72 million	0.00	-$12.53 million	($11.67)	0.00
Bumble	$1.05 billion	0.56	-$4.21 million	($4.89)	-1.17

Bumble has higher revenue and earnings than Grom Social Enterprises. Bumble is trading at a lower price-to-earnings ratio than Grom Social Enterprises, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Grom Social Enterprises has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, Bumble has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500.

Summary

Bumble beats Grom Social Enterprises on 12 of the 14 factors compared between the two stocks.

About Grom Social Enterprises

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company in the United States and Philippines. It operates through three segments: Animation, Original Content, and Social and Technology. The company operates a social media network for children under the age of 13 years. It also produces animated films and televisions series; and provides web filtering services to schools and government agencies, as well as acquires, develops, and builds commercial potential of kids and family entertainment properties and associated business opportunities. Grom Social Enterprises, Inc. was founded in 2012 and is headquartered in Boca Raton, Florida.

About Bumble

Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point. Bumble Inc. was founded in 2006 in and is headquartered in Austin, Texas.