GCL Global (NASDAQ:GCL – Get Free Report) and GRAVITY (NASDAQ:GRVY – Get Free Report) are both small-cap communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Institutional and Insider Ownership
36.5% of GCL Global shares are owned by institutional investors. Comparatively, 9.9% of GRAVITY shares are owned by institutional investors. 49.4% of GCL Global shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares GCL Global and GRAVITY”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GCL Global | $238.92 million | 0.56 | -$25.00 million | $0.01 | 105.00 |
| GRAVITY | $576.11 billion | 0.00 | $47.22 million | $8.15 | 8.37 |
GRAVITY has higher revenue and earnings than GCL Global. GRAVITY is trading at a lower price-to-earnings ratio than GCL Global, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
GCL Global has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, GRAVITY has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for GCL Global and GRAVITY, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GCL Global | 1 | 0 | 0 | 0 | 1.00 |
| GRAVITY | 0 | 1 | 0 | 0 | 2.00 |
Profitability
This table compares GCL Global and GRAVITY’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GCL Global | N/A | N/A | N/A |
| GRAVITY | 14.92% | 12.70% | 10.85% |
Summary
GRAVITY beats GCL Global on 8 of the 12 factors compared between the two stocks.
About GCL Global
GCL Global Limited is a video game company focused on the publishing, distribution and commercialization of interactive entertainment products. The company works with game developers and publishers to bring video games to consumers through digital storefronts, physical retail channels and other distribution platforms. Its activities include game localization, marketing, sales and distribution, with an emphasis on adapting products for regional audiences and market conditions. GCL Global serves international markets, including parts of Southeast Asia and other emerging gaming regions, through relationships with content owners, platform operators and retail partners.
About GRAVITY
Gravity Co., Ltd. is a South Korean online and mobile game developer and publisher headquartered in Seoul. Founded in 2000, the company is best known for the Ragnarok franchise, which is based on the comic series “Ragnarok” and has become one of its principal intellectual properties. Gravity’s products include massively multiplayer online role-playing games, mobile games and other interactive entertainment titles. Its portfolio includes “Ragnarok Online,” “Ragnarok Online II,” “Ragnarok M: Eternal Love,” “Ragnarok Origin” and “Ragnarok X: Next Generation,” along with related games and franchise adaptations for personal computers, mobile devices and other platforms.
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