Grid Dynamics (NASDAQ:GDYN – Get Free Report) and Cycurion (NASDAQ:CYCU – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Institutional & Insider Ownership
71.2% of Grid Dynamics shares are held by institutional investors. Comparatively, 6.6% of Cycurion shares are held by institutional investors. 6.5% of Grid Dynamics shares are held by company insiders. Comparatively, 4.6% of Cycurion shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Grid Dynamics and Cycurion”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grid Dynamics | $411.83 million | 1.53 | $9.67 million | $0.02 | 387.50 |
| Cycurion | $15.13 million | 0.60 | -$23.67 million | ($24.64) | -0.11 |
Grid Dynamics has higher revenue and earnings than Cycurion. Cycurion is trading at a lower price-to-earnings ratio than Grid Dynamics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Grid Dynamics has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Cycurion has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Grid Dynamics and Cycurion, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grid Dynamics | 2 | 1 | 4 | 1 | 2.50 |
| Cycurion | 1 | 1 | 1 | 0 | 2.00 |
Grid Dynamics currently has a consensus price target of $9.40, indicating a potential upside of 21.29%. Cycurion has a consensus price target of $56.00, indicating a potential upside of 1,892.88%. Given Cycurion’s higher probable upside, analysts plainly believe Cycurion is more favorable than Grid Dynamics.
Profitability
This table compares Grid Dynamics and Cycurion’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grid Dynamics | 0.68% | 1.90% | 1.66% |
| Cycurion | -98.83% | -98.55% | -46.19% |
Summary
Grid Dynamics beats Cycurion on 13 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 Cycurion
Cycurion is a global leading provider of Network Communications and Information Technology Security Solutions. Our mission is to develop and deliver world-class, cutting-edge solutions for our clients, regardless of size or complication, expressly optimizing your IT environment to meet the business need and to keep projects on track and on budget.
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