Reviewing Grid Dynamics (NASDAQ:GDYN) & Mogo (NASDAQ:MOGO)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Mogo and Grid Dynamics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mogo	1	0	0	0	1.00
Grid Dynamics	2	1	4	1	2.50

Grid Dynamics has a consensus target price of $9.40, indicating a potential upside of 20.82%. Given Grid Dynamics’ stronger consensus rating and higher probable upside, analysts clearly believe Grid Dynamics is more favorable than Mogo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mogo	11.41%	7.78%	3.34%
Grid Dynamics	0.68%	1.90%	1.66%

Institutional and Insider Ownership

14.8% of Mogo shares are owned by institutional investors. Comparatively, 71.2% of Grid Dynamics shares are owned by institutional investors. 12.3% of Mogo shares are owned by company insiders. Comparatively, 6.5% of Grid Dynamics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mogo	$69.27 million	0.35	-$9.98 million	$0.23	4.39
Grid Dynamics	$411.83 million	1.53	$9.67 million	$0.02	389.00

Grid Dynamics has higher revenue and earnings than Mogo. Mogo 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 & Risk

Mogo has a beta of 2.71, suggesting that its stock price is 171% more volatile than the S&P 500. Comparatively, Grid Dynamics has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Summary

Grid Dynamics beats Mogo on 9 of the 15 factors compared between the two stocks.

About Mogo

Mogo Inc. operates as a digital finance company in Canada, Europe, and internationally. The company's digital solutions help build wealth and achieve financial freedom. It provides MogoTrade, a stock trading app; Moka; and MogoMoney that provides online personal loans. The company also offers digital loans and mortgages; and operates a digital payments platform that powers next-generation card programs for both global corporations and fintech companies in Europe and Canada. Mogo Inc. is headquartered in Vancouver, Canada.

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.