Financial Analysis: Grom Social Enterprises (GROM) vs. Its Rivals

Grom Social Enterprises (NASDAQ:GROM) is one of 115 public companies in the “Computer programming, data processing, & other computer related” industry, but how does it weigh in compared to its rivals? We will compare Grom Social Enterprises to related businesses based on the strength of its risk, valuation, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Grom Social Enterprises and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grom Social Enterprises	0	0	0	0	N/A
Grom Social Enterprises Competitors	1047	4452	10233	289	2.61

As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 13.10%. Given Grom Social Enterprises’ rivals higher probable upside, analysts clearly believe Grom Social Enterprises has less favorable growth aspects than its rivals.

Risk and Volatility

Grom Social Enterprises has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Grom Social Enterprises’ rivals have a beta of 1.42, indicating that their average share price is 42% more volatile than the S&P 500.

Profitability

This table compares Grom Social Enterprises and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grom Social Enterprises	-309.92%	-71.55%	-57.60%
Grom Social Enterprises Competitors	-151.37%	-40.46%	-8.36%

Institutional & Insider Ownership

15.9% of Grom Social Enterprises shares are owned by institutional investors. Comparatively, 51.2% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 0.0% of Grom Social Enterprises shares are owned by insiders. Comparatively, 16.1% of shares of all “Computer programming, data processing, & other computer related” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Grom Social Enterprises and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Grom Social Enterprises	$4.04 million	-$12.53 million	-0.03
Grom Social Enterprises Competitors	$8.79 billion	$1.91 billion	59.89

Grom Social Enterprises’ rivals have higher revenue and earnings than Grom Social Enterprises. Grom Social Enterprises is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Grom Social Enterprises rivals beat Grom Social Enterprises on 8 of the 9 factors compared.

About Grom Social Enterprises

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company that focuses on delivering content in the United States. The company operates a social media network for children under the age of 13 years. It also produces animated films and televisions series; and provides web filtering services to schools and government agencies, as well as acquires, develops, and builds commercial potential of kids and family entertainment properties and associated business opportunities. Grom Social Enterprises, Inc. was founded in 2012 and is headquartered in Boca Raton, Florida.