Reviewing Grab (GRAB) & Its Competitors

Grab (NASDAQ:GRAB) is one of 100 publicly-traded companies in the “Ground Transportation” industry, but how does it compare to its competitors? We will compare Grab to related businesses based on the strength of its analyst recommendations, institutional ownership, risk, dividends, earnings, valuation and profitability.

Institutional and Insider Ownership

55.5% of Grab shares are owned by institutional investors. Comparatively, 60.5% of shares of all “Ground Transportation” companies are owned by institutional investors. 3.6% of Grab shares are owned by company insiders. Comparatively, 15.5% of shares of all “Ground Transportation” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Grab and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grab	0	1	8	2	3.09
Grab Competitors	1360	6506	8656	265	2.47

Grab presently has a consensus price target of $5.67, suggesting a potential upside of 72.04%. As a group, “Ground Transportation” companies have a potential upside of 16.44%. Given Grab’s stronger consensus rating and higher probable upside, equities analysts clearly believe Grab is more favorable than its competitors.

Profitability

This table compares Grab and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grab	15.97%	8.83%	4.92%
Grab Competitors	7.29%	13.08%	4.24%

Valuation and Earnings

This table compares Grab and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Grab	$3.37 billion	$268.00 million	54.92
Grab Competitors	$8.74 billion	$911.04 million	7.48

Grab’s competitors have higher revenue and earnings than Grab. Grab is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Grab has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Grab’s competitors have a beta of 1.14, indicating that their average share price is 14% more volatile than the S&P 500.

Summary

Grab beats its competitors on 7 of the 13 factors compared.

About Grab

Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.