Critical Analysis: Grom Social Enterprises (GROM) and Its Competitors

Grom Social Enterprises (NASDAQ:GROM) is one of 113 publicly-traded companies in the “Computer programming, data processing, & other computer related” industry, but how does it contrast to its competitors? We will compare Grom Social Enterprises to similar companies based on the strength of its dividends, institutional ownership, analyst recommendations, profitability, earnings, valuation and risk.

Profitability

This table compares Grom Social Enterprises and its competitors’ 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	-154.42%	-41.85%	-8.75%

Risk and Volatility

Grom Social Enterprises has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Grom Social Enterprises’ competitors have a beta of 1.41, suggesting that their average share price is 41% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Grom Social Enterprises	$4.04 million	-$12.53 million	-0.03
Grom Social Enterprises Competitors	$17.48 billion	$1.94 billion	46.07

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Grom Social Enterprises and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grom Social Enterprises	0	0	0	0	N/A
Grom Social Enterprises Competitors	1026	4395	10114	288	2.61

As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 15.26%. Given Grom Social Enterprises’ competitors higher probable upside, analysts plainly believe Grom Social Enterprises has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

15.9% of Grom Social Enterprises shares are owned by institutional investors. Comparatively, 50.9% 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, 16.4% of shares of all “Computer programming, data processing, & other computer related” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Grom Social Enterprises competitors beat Grom Social Enterprises on 9 of the 10 factors compared.

Grom Social Enterprises Company Profile

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.