Critical Review: Gravity (NASDAQ:GRVY) versus Paranovus Entertainment Technology (NASDAQ:PAVS)

Paranovus Entertainment Technology (NASDAQ:PAVS) and Gravity (NASDAQ:GRVY) are both small-cap multi-sector conglomerates companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Insider and Institutional Ownership

0.2% of Paranovus Entertainment Technology shares are owned by institutional investors. Comparatively, 9.9% of Gravity shares are owned by institutional investors. 15.6% of Paranovus Entertainment Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Paranovus Entertainment Technology and Gravity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paranovus Entertainment Technology	N/A	N/A	N/A
Gravity	14.87%	37.85%	30.67%

Analyst Recommendations

This is a summary of current ratings and price targets for Paranovus Entertainment Technology and Gravity, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paranovus Entertainment Technology	0	0	0	0	N/A
Gravity	0	0	0	0	N/A

Risk & Volatility

Paranovus Entertainment Technology has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, Gravity has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Earnings & Valuation

This table compares Paranovus Entertainment Technology and Gravity”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paranovus Entertainment Technology	$6.54 million	0.89	-$10.13 million	N/A	N/A
Gravity	$564.42 billion	0.00	$105.61 million	$13.23	4.37

Gravity has higher revenue and earnings than Paranovus Entertainment Technology.

Summary

Gravity beats Paranovus Entertainment Technology on 7 of the 9 factors compared between the two stocks.

About Paranovus Entertainment Technology

Paranovus Entertainment Technology Ltd. engages in the research, development, manufacture, and sale of nutraceutical and dietary supplement products in the People's Republic of China and internationally. The company's product category includes lucidum spore powders, cordyceps mycelia, Ejiao products, American ginseng products, other traditional Chinese herbal and animal extracts, vitamins, minerals, and amino acids. It also offers product marketing and e-commerce agency operation services under the Happy Buy platform to small and middle size businesses; and e-commerce solutions, internet information, and advertising services to the online stores or manufactures. In addition, the company provides secure transaction environment, automobile procurement, and financial services for automobile manufacturers under the Taochejun automobile sales platform. It sells its products through distributors, large-scale chain drugstores, malls, and supermarkets under the Happiness brand. The company was formerly known as Happiness Development Group Limited and changed its name to Paranovus Entertainment Technology Ltd. in March 2023. The company was founded in 2004 and is headquartered in Nanping, the People's Republic of China.

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.