Critical Analysis: Grom Social Enterprises (GROM) versus The Competition

Grom Social Enterprises (NASDAQ:GROM) is one of 113 publicly-traded companies in the “Computer programming, data processing, & other computer related” industry, but how does it contrast to its competitors? We will compare Grom Social Enterprises to related businesses based on the strength of its dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Risk & Volatility

Grom Social Enterprises has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Grom Social Enterprises’ competitors have a beta of 1.40, indicating that their average stock price is 40% more volatile than the S&P 500.

Valuation and Earnings

This table compares Grom Social Enterprises and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Grom Social Enterprises	$4.04 million	-$12.53 million	-0.03
Grom Social Enterprises Competitors	$9.02 billion	$1.95 billion	48.02

Grom Social Enterprises’ competitors have higher revenue and earnings than Grom Social Enterprises. Grom Social Enterprises is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

15.9% of Grom Social Enterprises shares are owned by institutional investors. Comparatively, 51.4% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 0.0% of Grom Social Enterprises shares are owned by insiders. Comparatively, 16.0% of shares of all “Computer programming, data processing, & other computer related” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grom Social Enterprises	-309.92%	-71.55%	-57.60%
Grom Social Enterprises Competitors	-156.20%	-43.55%	-8.84%

Analyst Recommendations

This is a summary of recent ratings and target prices for Grom Social Enterprises and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grom Social Enterprises	0	0	0	0	N/A
Grom Social Enterprises Competitors	1042	4437	10198	289	2.61

As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 16.94%. Given Grom Social Enterprises’ competitors higher probable upside, analysts clearly believe Grom Social Enterprises has less favorable growth aspects than its competitors.

Summary

Grom Social Enterprises competitors beat Grom Social Enterprises on 9 of the 10 factors compared.

Grom Social Enterprises Company Profile

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company that focuses on delivering content in the United States. 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.