Reviewing Riskified (NYSE:RSKD) and Gravity (NASDAQ:GRVY)

Riskified (NYSE:RSKDGet Rating) and Gravity (NASDAQ:GRVYGet Rating) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Riskified and Gravity, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Riskified 0 2 4 0 2.67
Gravity 0 0 0 0 N/A

Riskified currently has a consensus target price of $7.67, suggesting a potential upside of 44.38%. Given Riskified’s higher possible upside, equities analysts clearly believe Riskified is more favorable than Gravity.

Profitability

This table compares Riskified and Gravity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Riskified -45.76% -21.90% -18.49%
Gravity 13.08% 18.09% 13.86%

Insider & Institutional Ownership

25.8% of Riskified shares are owned by institutional investors. Comparatively, 8.3% of Gravity shares are owned by institutional investors. 17.4% of Riskified shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Riskified has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Gravity has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500.

Earnings and Valuation

This table compares Riskified and Gravity’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Riskified $229.14 million 3.80 -$178.88 million ($0.69) -7.70
Gravity $361.55 million 0.87 $59.35 million $5.65 7.97

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

Summary

Gravity beats Riskified on 7 of the 13 factors compared between the two stocks.

About Riskified

(Get Rating)

Riskified Ltd. operates an e-commerce risk management platform that allows online merchants to create trusted relationships with their consumers in the United States, Europe, the Middle East, Africa, and internationally. It offers Chargeback Guarantee that approves or denies online orders; Policy Protect and Account Secure, which identifies and blocks consumers that may be taking advantage of the merchant's terms and conditions or that may be trying to gain unauthorized access to another consumer's account; Deco and PSD2, a optimize products that help merchants to avoid bank authorization failures and abandoned shopping carts resulting from the secure customer authentication process. The company was incorporated in 2012 and is headquartered in Tel Aviv, Israel.

About Gravity

(Get Rating)

Gravity Co., Ltd. develops and publishes online and mobile games in South Korea, Taiwan, Thailand, and Japan. The company offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Prequel II. Its mobile games portfolio includes Ragnarok M: Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; and Paladog Tactics. The company also provides console games, such as Ragnarok DS for Nintendo DS; Ragnarok: The Princess of Light and Darkness for PlayStation Portable; Ragnarok Odyssey for PlayStation Vita; Double Dragon II for Xbox 360; Ragnarok Odyssey Ace for PlayStation Vita and PlayStation 3; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Pororo: The Little Penguin; and markets dolls, stationery, food, and other character-based merchandises, as well as game manuals, monthly magazines, and other publications. Further, the company provides system development and maintenance services, as well as system integration services to third parties. As of December 31, 2021, it owned 156 registered domain names. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.

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