Reviewing Wipro (NYSE:WIT) & Grid Dynamics (NASDAQ:GDYN)

Wipro (NYSE:WIT) and Grid Dynamics (NASDAQ:GDYN) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings for Wipro and Grid Dynamics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wipro	1	4	0	0	1.80
Grid Dynamics	0	2	3	0	2.60

Grid Dynamics has a consensus price target of $11.33, indicating a potential upside of 17.20%. Given Grid Dynamics’ stronger consensus rating and higher probable upside, analysts plainly believe Grid Dynamics is more favorable than Wipro.

Institutional & Insider Ownership

2.4% of Wipro shares are owned by institutional investors. Comparatively, 71.2% of Grid Dynamics shares are owned by institutional investors. 1.0% of Wipro shares are owned by company insiders. Comparatively, 6.5% of Grid Dynamics shares are owned 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 Wipro and Grid Dynamics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wipro	$10.43 billion	2.82	$1.54 billion	$0.15	18.70
Grid Dynamics	$350.57 million	2.34	$4.04 million	$0.15	64.47

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

Risk & Volatility

Wipro has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Grid Dynamics has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Profitability

This table compares Wipro and Grid Dynamics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wipro	15.06%	15.80%	10.38%
Grid Dynamics	3.42%	1.74%	1.52%

Summary

Wipro beats Grid Dynamics on 7 of the 13 factors compared between the two stocks.

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, retail connectivity and services, consumer goods, healthcare, technology products and platforms, banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company was incorporated in 1945 and is based in Bengaluru, India.

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.