Head to Head Survey: Clarivate (NYSE:CLVT) and Grid Dynamics (NASDAQ:GDYN)

Grid Dynamics (NASDAQ:GDYN) and Clarivate (NYSE:CLVT) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares Grid Dynamics and Clarivate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grid Dynamics	1.27%	1.20%	1.05%
Clarivate	-5.61%	8.82%	3.86%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grid Dynamics	2	2	4	0	2.25
Clarivate	3	4	0	0	1.57

Grid Dynamics currently has a consensus price target of $9.00, indicating a potential upside of 55.44%. Clarivate has a consensus price target of $2.98, indicating a potential upside of 24.43%. Given Grid Dynamics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Grid Dynamics is more favorable than Clarivate.

Institutional and Insider Ownership

71.2% of Grid Dynamics shares are owned by institutional investors. Comparatively, 85.7% of Clarivate shares are owned by institutional investors. 6.5% of Grid Dynamics shares are owned by insiders. Comparatively, 22.9% of Clarivate shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Grid Dynamics has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Clarivate has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Valuation & Earnings

This table compares Grid Dynamics and Clarivate”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grid Dynamics	$415.51 million	1.17	$9.67 million	$0.05	115.80
Clarivate	$2.45 billion	0.63	-$201.10 million	($0.21)	-11.40

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

Summary

Grid Dynamics beats Clarivate on 8 of the 14 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 Clarivate

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.