Clarivate (NYSE:CLVT) vs. Grid Dynamics (NASDAQ:GDYN) Head to Head Analysis

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

Institutional & Insider Ownership

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

Profitability

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

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clarivate	$2.46 billion	0.53	-$201.10 million	($0.21)	-9.69
Grid Dynamics	$411.83 million	1.16	$9.67 million	$0.05	113.80

Grid Dynamics has lower revenue, but higher earnings 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Clarivate and Grid Dynamics, as provided by MarketBeat.com.

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

Clarivate presently has a consensus target price of $2.98, suggesting a potential upside of 46.44%. Grid Dynamics has a consensus target price of $9.00, suggesting a potential upside of 58.17%. Given Grid Dynamics’ stronger consensus rating and higher possible upside, analysts clearly believe Grid Dynamics is more favorable than Clarivate.

Risk and Volatility

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

Summary

Grid Dynamics beats Clarivate on 8 of the 14 factors compared between the two stocks.

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.

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.