Head to Head Analysis: Steel Connect (NASDAQ:STCN) vs. Grab (NASDAQ:GRAB)

Steel Connect (NASDAQ:STCN – Get Rating) and Grab (NASDAQ:GRAB – Get Rating) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Steel Connect and Grab, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Steel Connect	0	0	0	0	N/A
Grab	1	2	9	0	2.67

Grab has a consensus price target of $3.87, indicating a potential upside of 40.22%. Given Grab’s higher possible upside, analysts plainly believe Grab is more favorable than Steel Connect.

Risk and Volatility

Steel Connect has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Grab has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Profitability

This table compares Steel Connect and Grab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Steel Connect	17.38%	N/A	-1.63%
Grab	-86.94%	-21.78%	-15.25%

Earnings & Valuation

This table compares Steel Connect and Grab’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Steel Connect	$203.27 million	0.25	-$10.97 million	$0.55	1.51
Grab	$1.43 billion	7.22	-$1.68 billion	($0.39)	-7.08

Steel Connect has higher earnings, but lower revenue than Grab. Grab is trading at a lower price-to-earnings ratio than Steel Connect, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

47.2% of Steel Connect shares are held by institutional investors. Comparatively, 46.6% of Grab shares are held by institutional investors. 11.0% of Steel Connect shares are held by company insiders. Comparatively, 3.6% of Grab shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Steel Connect beats Grab on 8 of the 13 factors compared between the two stocks.

About Steel Connect

(Get Rating)

Steel Connect, Inc. is a holding company, which engages in the provision of an end-to-end global supply chain solutions and e-commerce services. Its product aims to improve their clients’ global supply chain, speed to market, product customization, flexibility, cost, quality and service. The company was founded in 1986 and is headquartered in Smyrna, TN.

About Grab

(Get Rating)

Grab Holdings Limited provides superapps that allows access to mobility, delivery, financial services, and enterprise offerings through its mobile application in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company is headquartered in Singapore.