Critical Survey: Grom Social Enterprises (GROM) versus Its Peers

Grom Social Enterprises (NASDAQ:GROM) is one of 115 publicly-traded companies in the “Computer programming, data processing, & other computer related” industry, but how does it weigh in compared to its peers? We will compare Grom Social Enterprises to related businesses based on the strength of its institutional ownership, profitability, risk, dividends, analyst recommendations, earnings and valuation.

Risk and Volatility

Grom Social Enterprises has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, Grom Social Enterprises’ peers have a beta of 1.39, meaning that their average stock price is 39% more volatile than the S&P 500.

Valuation and Earnings

This table compares Grom Social Enterprises and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Grom Social Enterprises	$4.04 million	-$16.33 million	-0.03
Grom Social Enterprises Competitors	$8.87 billion	$1.93 billion	45.44

Grom Social Enterprises’ peers have higher revenue and earnings than Grom Social Enterprises. Grom Social Enterprises is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grom Social Enterprises	-298.87%	-72.81%	-60.79%
Grom Social Enterprises Competitors	-152.95%	-41.53%	-8.72%

Insider & Institutional Ownership

15.9% of Grom Social Enterprises shares are owned by institutional investors. Comparatively, 50.8% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 0.0% of Grom Social Enterprises shares are owned by insiders. Comparatively, 16.7% of shares of all “Computer programming, data processing, & other computer related” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Grom Social Enterprises and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grom Social Enterprises	0	0	0	0	N/A
Grom Social Enterprises Competitors	1034	4417	10145	288	2.61

Grom Social Enterprises currently has a consensus target price of $0.00, suggesting a potential downside of 100.00%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 16.12%. Given Grom Social Enterprises’ peers higher probable upside, analysts clearly believe Grom Social Enterprises has less favorable growth aspects than its peers.

Summary

Grom Social Enterprises peers beat Grom Social Enterprises on 8 of the 9 factors compared.

Grom Social Enterprises Company Profile

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company that focuses on delivering content in the United States. 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.