Reviewing WEBTOON Entertainment (NASDAQ:WBTN) and Grindr (NYSE:GRND)

Grindr (NYSE:GRND) and WEBTOON Entertainment (NASDAQ:WBTN) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for Grindr and WEBTOON Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grindr	0	2	4	0	2.67
WEBTOON Entertainment	1	6	3	0	2.20

Grindr presently has a consensus price target of $18.80, indicating a potential upside of 42.48%. WEBTOON Entertainment has a consensus price target of $15.07, indicating a potential upside of 23.54%. Given Grindr’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Grindr is more favorable than WEBTOON Entertainment.

Volatility and Risk

Grindr has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, WEBTOON Entertainment has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500.

Institutional & Insider Ownership

7.2% of Grindr shares are owned by institutional investors. 67.7% of Grindr shares are owned by company insiders. Comparatively, 5.5% of WEBTOON Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Grindr and WEBTOON Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grindr	21.54%	60.60%	17.25%
WEBTOON Entertainment	-24.94%	1.44%	1.12%

Earnings & Valuation

This table compares Grindr and WEBTOON Entertainment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grindr	$439.90 million	5.55	$94.75 million	$0.43	30.69
WEBTOON Entertainment	$1.38 billion	1.18	-$345.93 million	($2.65)	-4.60

Grindr has higher earnings, but lower revenue than WEBTOON Entertainment. WEBTOON Entertainment is trading at a lower price-to-earnings ratio than Grindr, indicating that it is currently the more affordable of the two stocks.

Summary

Grindr beats WEBTOON Entertainment on 12 of the 14 factors compared between the two stocks.

About Grindr

Grindr Inc. operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version. Grindr Inc. was founded in 2009 and is headquartered in West Hollywood, California.

About WEBTOON Entertainment

WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.