Grom Social Enterprises (NASDAQ:GROM – Get Free Report) and Dada Nexus (NASDAQ:DADA – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.
Risk and Volatility
Grom Social Enterprises has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Dada Nexus has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.
Insider and Institutional Ownership
3.8% of Grom Social Enterprises shares are held by institutional investors. Comparatively, 23.6% of Dada Nexus shares are held by institutional investors. 0.2% of Grom Social Enterprises shares are held by insiders. Comparatively, 8.5% of Dada Nexus shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grom Social Enterprises | $5.40 million | 0.58 | -$16.33 million | N/A | N/A |
| Dada Nexus | $9.92 billion | 0.17 | -$291.13 million | ($1.07) | -5.69 |
Grom Social Enterprises has higher earnings, but lower revenue than Dada Nexus.
Profitability
This table compares Grom Social Enterprises and Dada Nexus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grom Social Enterprises | -279.84% | -67.85% | -51.99% |
| Dada Nexus | -20.13% | -19.13% | -14.97% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Grom Social Enterprises and Dada Nexus, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grom Social Enterprises | 0 | 0 | 1 | 0 | 3.00 |
| Dada Nexus | 0 | 1 | 1 | 0 | 2.50 |
Grom Social Enterprises presently has a consensus price target of $1.00, suggesting a potential upside of 187.36%. Dada Nexus has a consensus price target of $13.18, suggesting a potential upside of 116.46%. Given Grom Social Enterprises’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Grom Social Enterprises is more favorable than Dada Nexus.
Summary
Dada Nexus beats Grom Social Enterprises on 7 of the 11 factors compared between the two stocks.
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.
About Dada Nexus
Dada Nexus Limited operates a platform of local on-demand retail and delivery in the People's Republic of China. It operates Dada Now, a local on-demand delivery platform that provides intra-city delivery and last-mile delivery services on an on-demand basis to chain merchants, small- and medium-sized enterprise merchants, and individual senders; and JDDJ, a local on-demand retail platform for consumers, retailers, and brand owner. The company was incorporated in 2014 and is headquartered in Shanghai, the People's Republic of China.
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