Grid Dynamics (NASDAQ:GDYN – Get Free Report) and CoStar Group (NASDAQ:CSGP – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
Earnings and Valuation
This table compares Grid Dynamics and CoStar Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grid Dynamics | $350.57 million | 1.85 | $4.04 million | $0.19 | 40.26 |
| CoStar Group | $2.74 billion | 14.32 | $138.70 million | $0.25 | 370.00 |
Insider & Institutional Ownership
71.2% of Grid Dynamics shares are held by institutional investors. Comparatively, 96.6% of CoStar Group shares are held by institutional investors. 7.2% of Grid Dynamics shares are held by company insiders. Comparatively, 1.1% of CoStar Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Grid Dynamics and CoStar Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grid Dynamics | 4.37% | 1.89% | 1.64% |
| CoStar Group | 3.57% | 2.88% | 2.36% |
Risk & Volatility
Grid Dynamics has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, CoStar Group has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Grid Dynamics and CoStar Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grid Dynamics | 0 | 0 | 4 | 0 | 3.00 |
| CoStar Group | 1 | 3 | 11 | 1 | 2.75 |
Grid Dynamics currently has a consensus price target of $17.50, indicating a potential upside of 128.76%. CoStar Group has a consensus price target of $93.25, indicating a potential upside of 0.81%. Given Grid Dynamics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Grid Dynamics is more favorable than CoStar Group.
Summary
CoStar Group beats Grid Dynamics on 10 of the 15 factors compared between the two stocks.
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.
About CoStar Group
CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin America. The company offers CoStar Property that provides inventory of office, industrial, retail, multifamily, hospitality, and student housing properties and land; CoStar Sales, a robust database of comparable commercial real estate sales transactions; CoStar Market Analytics to view and report on aggregated market and submarket trends; and CoStar Tenant, an online business-to-business prospecting and analytical tool that provides tenant information. It also provides Leasing, a tool to capture, manage, and maintain lease data; CoStar Lease Analysis; Public Record, a searchable database of commercially zoned parcels; CoStar Real Estate Manager, a real estate lease administration, portfolio management, and lease accounting compliance software solution; and CoStar Risk Analytics and CoStar Investment. In addition, it offers apartment marketing sites, such as ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, WestsideRentals.com, AFTER55.com, CorporateHousing.com, ForRentUniversity.com, Apartamentos.com, and Off Campus Partners; LoopNet Premium Lister; LoopNet Diamond, Platinum, and Gold Ads; LandsofAmerica.com, LandAndFarm.com, and LandWatch.com for rural land for-sale; BizBuySell.com, BizQuest.com, and FindaFranchise.com for operating businesses and franchises for-sale; Ten-X, an online auction platform for commercial real estate; and HomeSnap, an online and mobile software platform, as well as Homes.com, a homes for sale listings site. The company was founded in 1987 and is headquartered in Washington, the District of Columbia.
Receive News & Ratings for Grid Dynamics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Grid Dynamics and related companies with MarketBeat.com's FREE daily email newsletter.
