Gridsum (NASDAQ:GSUM) and Coupa Software (NASDAQ:COUP) 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, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Earnings and Valuation

This table compares Gridsum and Coupa Software’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gridsum $62.72 million 0.68 -$75.82 million N/A N/A
Coupa Software $260.37 million 40.49 -$55.52 million ($0.67) -246.64

Coupa Software has higher revenue and earnings than Gridsum.

Risk & Volatility

Gridsum has a beta of 2.72, suggesting that its stock price is 172% more volatile than the S&P 500. Comparatively, Coupa Software has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Insider and Institutional Ownership

24.5% of Gridsum shares are held by institutional investors. 5.3% of Coupa Software shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Gridsum and Coupa Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gridsum -183.38% N/A -56.84%
Coupa Software -23.60% -12.24% -4.21%

Analyst Ratings

This is a summary of current recommendations and price targets for Gridsum and Coupa Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gridsum 0 0 0 0 N/A
Coupa Software 0 8 15 0 2.65

Coupa Software has a consensus price target of $164.45, indicating a potential downside of 0.48%. Given Coupa Software’s higher possible upside, analysts plainly believe Coupa Software is more favorable than Gridsum.

Summary

Coupa Software beats Gridsum on 8 of the 12 factors compared between the two stocks.

About Gridsum

Gridsum Holding Inc. provides data analysis software for enterprises and government agencies in China. Its proprietary distributed data architecture allows its customers to collect and analyze information; and Gridsum Big Data platform and Gridsum Prophet performs multi-dimensional correlation analysis and analyzes complex real-time events. The company offers Web Dissector to analyze customer Websites by monitoring and analyzing key performance indicators; Mobile Dissector to understand mobile app user activity; SEM Dissector for search engine marketing; SEO Dissector, a search engine optimization tool; Ad Dissector, an advertisement performance monitoring and optimization product; Contribution Dissector to track and analyze user behavior from original access to ultimate conversion; Audience Dissector, an audience analysis product; and Recommendation Engine, a data driven content recommendation solution. It also provides Government Web Dissector, a digital intelligence solution; Government Website Group Integrated Management Platform, an integrated management platform; Streaming Dissector, a real-time viewership analysis for digital online video; Video Dissector, an online video content analytics tool; TV Dissector, an analytics tool; Rating Plus, a television viewing data analytics tool; and Media Dissector, a mass, social, and user-generated content media monitoring and analytics tool. In addition, the company offers Law Dissector, a search and statistical analysis tool; Smart Push, a legal research tool; voice recognition and transcription system; Information Dissector, an insightful analytical system; Social Listening, a cloud-based social listening solution; Gridsum Dashboard, a data visualization tool; and Gridsum Report Center, an automated report generation and distribution tool. Further, it develops new media analytics and information discovery solutions to address customer needs. The company was founded in 2005 and is headquartered in Beijing, China.

About Coupa Software

Coupa Software, Inc. engages in providing business spend management (BSM) solutions. It offers cloud-based BSM platform that delivers a broad range of capabilities that would typically require the purchase and use of multiple disparate point applications. Its platform consists of procurement, invoicing, expense management and payments modules that form the transactional engine for managing a company’s business spend. The company was founded by Noah Eisner and Dave Stephens in 2006 and is headquartered in San Mateo, CA.

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