Analyzing WEBTOON Entertainment (NASDAQ:WBTN) & Grindr (NYSE:GRND)

WEBTOON Entertainment (NASDAQ:WBTN) and Grindr (NYSE:GRND) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Risk & Volatility

WEBTOON Entertainment has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500. Comparatively, Grindr has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Profitability

This table compares WEBTOON Entertainment and Grindr’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WEBTOON Entertainment	-24.94%	1.44%	1.12%
Grindr	21.54%	60.60%	17.25%

Insider and Institutional Ownership

7.2% of Grindr shares are held by institutional investors. 5.5% of WEBTOON Entertainment shares are held by insiders. Comparatively, 67.7% of Grindr shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for WEBTOON Entertainment and Grindr, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEBTOON Entertainment	1	6	3	0	2.20
Grindr	0	2	4	0	2.67

WEBTOON Entertainment presently has a consensus target price of $15.07, indicating a potential upside of 31.51%. Grindr has a consensus target price of $18.80, indicating a potential upside of 45.13%. Given Grindr’s stronger consensus rating and higher possible upside, analysts clearly believe Grindr is more favorable than WEBTOON Entertainment.

Valuation & Earnings

This table compares WEBTOON Entertainment and Grindr”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WEBTOON Entertainment	$1.38 billion	1.11	-$345.93 million	($2.65)	-4.32
Grindr	$439.90 million	5.45	$94.75 million	$0.43	30.13

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

Summary

Grindr beats WEBTOON Entertainment on 12 of the 14 factors compared between the two stocks.

About WEBTOON Entertainment

WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.

About Grindr

Grindr Inc. operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version. Grindr Inc. was founded in 2009 and is headquartered in West Hollywood, California.