Head-To-Head Comparison: Datasea (NASDAQ:DTSS) & Grid Dynamics (NASDAQ:GDYN)

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

Profitability

This table compares Grid Dynamics and Datasea’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grid Dynamics	2.35%	1.46%	1.28%
Datasea	-4.80%	-88.98%	-37.33%

Institutional & Insider Ownership

71.2% of Grid Dynamics shares are held by institutional investors. Comparatively, 82.1% of Datasea shares are held by institutional investors. 6.5% of Grid Dynamics shares are held by insiders. Comparatively, 50.7% of Datasea shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Grid Dynamics has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Datasea has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Grid Dynamics and Datasea, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grid Dynamics	1	1	5	0	2.57
Datasea	1	0	0	0	1.00

Grid Dynamics currently has a consensus price target of $10.60, suggesting a potential upside of 83.71%. Given Grid Dynamics’ stronger consensus rating and higher possible upside, research analysts clearly believe Grid Dynamics is more favorable than Datasea.

Valuation and Earnings

This table compares Grid Dynamics and Datasea”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grid Dynamics	$411.83 million	1.20	$9.67 million	$0.10	57.70
Datasea	$56.89 million	0.17	-$5.09 million	($0.32)	-2.88

Grid Dynamics has higher revenue and earnings than Datasea. Datasea 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 Datasea on 12 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 Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.