Comparing Phunware (NASDAQ:PHUN) & Gravity (NASDAQ:GRVY)

Phunware (NASDAQ:PHUN) and Gravity (NASDAQ:GRVY) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares Phunware and Gravity’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phunware	$4.83 million	6.51	-$52.78 million	N/A	N/A
Gravity	$680.35 billion	0.00	$105.61 million	$13.23	5.02

Gravity has higher revenue and earnings than Phunware.

Risk and Volatility

Phunware has a beta of 2.58, meaning that its share price is 158% more volatile than the S&P 500. Comparatively, Gravity has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Phunware and Gravity, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phunware	0	0	3	0	3.00
Gravity	0	0	0	0	N/A

Phunware currently has a consensus target price of $17.33, suggesting a potential upside of 356.14%. Given Phunware’s higher probable upside, analysts clearly believe Phunware is more favorable than Gravity.

Profitability

This table compares Phunware and Gravity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phunware	N/A	-403.47%	-111.93%
Gravity	16.96%	46.65%	36.71%

Insider & Institutional Ownership

7.6% of Phunware shares are owned by institutional investors. Comparatively, 9.9% of Gravity shares are owned by institutional investors. 1.2% of Phunware shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Gravity beats Phunware on 6 of the 11 factors compared between the two stocks.

About Phunware

Phunware, Inc., together with its subsidiaries, provides integrated software platform that equips companies with the products, solutions, and services to engage, manage, and monetize their mobile application portfolios in the United States and internationally. The company's products and services include mobile software and application transaction solutions comprise integration of software development kit (SDK) licenses, which consists of analytics that offers data related to application use and engagement; content management that allows application administrators to create and manage app content in a cloud-based portal; alerts, notifications, and messaging, which enables brands to send messages; marketing automation that enables location-triggered messages and workflow; advertising; and location-based services, such as mapping, navigation, wayfinding, workflow, asset management, and policy enforcement. It is also involved in the integration of its SDK licenses into existing applications maintained by its customers, as well as custom application development and support services; and provision of cloud-based vertical solutions for healthcare, retail, sports, aviation, real estate, hospitality, education, and other applications, as well as application transactions, including re-occurring and one-time transactional media purchases for application discovery, user acquisition and audience building, audience engagement, and audience monetization. Phunware, Inc. was founded in 2009 and is headquartered in Austin, Texas.

About Gravity

Gravity Co., Ltd. develops and publishes online and mobile games in South Korea, Taiwan, Thailand, and the United States. The company offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Prequel II. Its mobile games portfolio includes Ragnarok M: Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; and Paladog Tactics. The company also provides console games, such as Ragnarok DS for Nintendo DS; Ragnarok: The Princess of Light and Darkness for PlayStation Portable; Ragnarok Odyssey for PlayStation Vita; Double Dragon II for Xbox 360; Ragnarok Odyssey Ace for PlayStation Vita and PlayStation 3; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Haunted House and Pororo: The Little Penguin; and markets dolls, stationery, food, and other character-based merchandises, as well as game manuals, monthly magazines, and other publications. Further, the company provides system development and maintenance services, as well as system integration services to third parties. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.