Grid Dynamics (NASDAQ:GDYN) versus CLPS Incorporation (NASDAQ:CLPS) Head-To-Head Survey

Grid Dynamics (NASDAQ:GDYN) and CLPS Incorporation (NASDAQ:CLPS) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Volatility and Risk

Grid Dynamics has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, CLPS Incorporation has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Profitability

This table compares Grid Dynamics and CLPS Incorporation’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%
CLPS Incorporation	N/A	N/A	N/A

Earnings and Valuation

This table compares Grid Dynamics and CLPS Incorporation”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	1.81	$4.04 million	$0.19	39.47
CLPS Incorporation	$142.81 million	0.20	-$2.33 million	N/A	N/A

Grid Dynamics has higher revenue and earnings than CLPS Incorporation.

Insider & Institutional Ownership

71.2% of Grid Dynamics shares are owned by institutional investors. Comparatively, 0.2% of CLPS Incorporation shares are owned by institutional investors. 7.2% of Grid Dynamics shares are owned by insiders. Comparatively, 58.7% of CLPS Incorporation shares 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Grid Dynamics and CLPS Incorporation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grid Dynamics	0	0	4	0	3.00
CLPS Incorporation	0	0	0	0	0.00

Grid Dynamics presently has a consensus target price of $15.75, suggesting a potential upside of 110.00%. Given Grid Dynamics’ stronger consensus rating and higher possible upside, research analysts clearly believe Grid Dynamics is more favorable than CLPS Incorporation.

Summary

Grid Dynamics beats CLPS Incorporation on 11 of the 12 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 CLPS Incorporation

CLPS Incorporation provides information technology (IT), consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT services to its clients in the banking, wealth management, e-commerce, and automotive industries; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting; and fee-for-service training services, as well as sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.