Gridsum Holding (NASDAQ: GSUM) is one of 110 public companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare Gridsum Holding to related businesses based on the strength of its valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Profitability

This table compares Gridsum Holding and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gridsum Holding -26.87% -16.80% -10.15%
Gridsum Holding Competitors -47.07% -23.35% -9.49%

Earnings & Valuation

This table compares Gridsum Holding and its peers revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Gridsum Holding $57.65 million -$9.74 million -10.31
Gridsum Holding Competitors $2.28 billion $424.00 million 338.92

Gridsum Holding’s peers have higher revenue and earnings than Gridsum Holding. Gridsum Holding is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Gridsum Holding has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Gridsum Holding’s peers have a beta of 0.93, suggesting that their average share price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Gridsum Holding and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gridsum Holding 0 0 0 0 N/A
Gridsum Holding Competitors 276 2031 4404 86 2.63

As a group, “Software” companies have a potential upside of 4.43%. Given Gridsum Holding’s peers higher possible upside, analysts clearly believe Gridsum Holding has less favorable growth aspects than its peers.

Institutional & Insider Ownership

37.0% of Gridsum Holding shares are held by institutional investors. Comparatively, 58.0% of shares of all “Software” companies are held by institutional investors. 19.0% of shares of all “Software” companies 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.

Summary

Gridsum Holding peers beat Gridsum Holding on 7 of the 9 factors compared.

About Gridsum Holding

Gridsum Holding Inc. is a holding company. The Company provides data analysis software for multinational and domestic enterprises, and government agencies in China. The Company’s technology, the Gridsum Big Data Platform performs multi-dimensional correlation analysis and analyzes real-time events. The Company offers various types of solutions and technologies. The Company’s software products are designed for a range of commercial and governmental applications. The Company’s products focus on digital marketing analytics and automation solutions. The Company offers Web analytics solutions based on data warehouse technology to build solutions on a distributed data warehouse architecture, using the open-source Hadoop framework. The Company delivers its solutions as cloud-based software-as-a-service (SaaS) offerings that manage information technology (IT) support costs by outsourcing hardware and software maintenance and support.

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