Comparing Grid Dynamics (NASDAQ:GDYN) & Evolv Technologies (NASDAQ:EVLV)

Grid Dynamics (NASDAQ:GDYN) and Evolv Technologies (NASDAQ:EVLV) 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 earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Insider and Institutional Ownership

71.2% of Grid Dynamics shares are owned by institutional investors. Comparatively, 66.7% of Evolv Technologies shares are owned by institutional investors. 6.5% of Grid Dynamics shares are owned by company insiders. Comparatively, 11.3% of Evolv Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Grid Dynamics and Evolv Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grid Dynamics	2	0	5	0	2.43
Evolv Technologies	1	1	3	1	2.67

Grid Dynamics currently has a consensus target price of $10.60, suggesting a potential upside of 85.31%. Evolv Technologies has a consensus target price of $9.13, suggesting a potential upside of 37.63%. Given Grid Dynamics’ higher probable upside, research analysts clearly believe Grid Dynamics is more favorable than Evolv Technologies.

Volatility and Risk

Grid Dynamics has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Evolv Technologies has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.

Valuation & Earnings

This table compares Grid Dynamics and Evolv Technologies”s 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	1.19	$9.67 million	$0.10	57.20
Evolv Technologies	$145.91 million	8.15	-$33.14 million	($0.21)	-31.57

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

Profitability

This table compares Grid Dynamics and Evolv Technologies’ 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%
Evolv Technologies	-22.71%	-30.45%	-11.58%

Summary

Grid Dynamics beats Evolv Technologies on 10 of the 15 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 Evolv Technologies

Evolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based weapons detection for security screening in the United States and internationally. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives; and Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics. The company was founded in 2013 and is headquartered in Waltham, Massachusetts.