Comparing Grid Dynamics (NASDAQ:GDYN) and Unisys (NYSE:UIS)

Grid Dynamics (NASDAQ:GDYN) and Unisys (NYSE:UIS) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Grid Dynamics and Unisys, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grid Dynamics	0	0	4	0	3.00
Unisys	0	1	2	0	2.67

Grid Dynamics currently has a consensus target price of $15.75, suggesting a potential upside of 102.70%. Unisys has a consensus target price of $7.17, suggesting a potential upside of 75.44%. Given Grid Dynamics’ stronger consensus rating and higher possible upside, analysts clearly believe Grid Dynamics is more favorable than Unisys.

Insider & Institutional Ownership

71.2% of Grid Dynamics shares are owned by institutional investors. Comparatively, 86.9% of Unisys shares are owned by institutional investors. 7.2% of Grid Dynamics shares are owned by insiders. Comparatively, 2.7% of Unisys shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Grid Dynamics has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Unisys has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Profitability

This table compares Grid Dynamics and Unisys’ 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%
Unisys	-4.16%	-12.55%	1.56%

Earnings and Valuation

This table compares Grid Dynamics and Unisys”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grid Dynamics	$350.57 million	1.88	$4.04 million	$0.19	40.89
Unisys	$2.01 billion	0.15	-$193.40 million	($1.18)	-3.46

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

Summary

Grid Dynamics beats Unisys on 11 of the 14 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 Unisys

Unisys Corporation, together with its subsidiaries, operates as an information technology solutions company in the United States and internationally. It operates in three segments: Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions. The DWS segment provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, unified experience management, and modern device management; and traditional workplace solutions, including traditional service desk, device management and field services. The CA&I segment offers cloud management, hybrid infrastructure, modern applications, data and artificial intelligence, and cyber security; and design, implementation, monitoring, automation, and management of dedicated on-premises or hosted infrastructure. The Enterprise Computing Solutions segment provides license and support solutions; specialized services, next-generation computing, and industry solutions; and other solutions that provides various micro-market and business process solutions. The company also offers enterprise software and technology products, including Unisys InteliServe, PowerSuite, Unisys Logistics Optimization, CloudForte, ClearPath Forward, and Unisys Stealth. It serves its products in the travel and transportation, financial services, and healthcare industries. Unisys Corporation was founded in 1873 and is based in Blue Bell, Pennsylvania.