Head-To-Head Survey: ZipRecruiter (NYSE:ZIP) vs. Grom Social Enterprises (NASDAQ:GROM)

Grom Social Enterprises (NASDAQ:GROM) and ZipRecruiter (NYSE:ZIP) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grom Social Enterprises	N/A	N/A	N/A
ZipRecruiter	-7.35%	N/A	-5.58%

Insider & Institutional Ownership

15.9% of Grom Social Enterprises shares are owned by institutional investors. Comparatively, 70.6% of ZipRecruiter shares are owned by institutional investors. 0.0% of Grom Social Enterprises shares are owned by company insiders. Comparatively, 17.4% of ZipRecruiter shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Grom Social Enterprises and ZipRecruiter”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grom Social Enterprises	$3.72 million	0.00	-$12.53 million	($11.67)	0.00
ZipRecruiter	$448.95 million	0.52	-$32.99 million	($0.35)	-7.92

Grom Social Enterprises has higher earnings, but lower revenue than ZipRecruiter. ZipRecruiter is trading at a lower price-to-earnings ratio than Grom Social Enterprises, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Grom Social Enterprises has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, ZipRecruiter has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Grom Social Enterprises and ZipRecruiter, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grom Social Enterprises	0	0	0	0	0.00
ZipRecruiter	1	4	0	0	1.80

ZipRecruiter has a consensus price target of $4.00, suggesting a potential upside of 44.35%. Given ZipRecruiter’s stronger consensus rating and higher probable upside, analysts clearly believe ZipRecruiter is more favorable than Grom Social Enterprises.

Summary

ZipRecruiter beats Grom Social Enterprises on 7 of the 12 factors compared between the two stocks.

About Grom Social Enterprises

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company in the United States and Philippines. It operates through three segments: Animation, Original Content, and Social and Technology. 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.

About ZipRecruiter

ZipRecruiter, Inc. operates an online employment marketplace that connects job seekers and employers. Its platform provides various solutions, such as job posting, online interviews, job alerts, match scores, and application updates. The company was incorporated in 2010 and is based in Santa Monica, California.