Glu Mobile (NASDAQ: GLUU) and NXT-ID (NASDAQ:NXTD) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitabiliy and risk.

Earnings and Valuation

This table compares Glu Mobile and NXT-ID’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Glu Mobile $202.84 million 1.83 -$70.23 million N/A N/A
NXT-ID $14.38 million 1.06 -$1.96 million N/A N/A

NXT-ID has higher revenue, but lower earnings than Glu Mobile.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Glu Mobile and NXT-ID, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Glu Mobile 0 5 4 0 2.44
NXT-ID 0 0 1 0 3.00

Glu Mobile presently has a consensus price target of $2.81, indicating a potential upside of 1.90%. NXT-ID has a consensus price target of $4.25, indicating a potential upside of 167.30%. Given NXT-ID’s stronger consensus rating and higher probable upside, analysts clearly believe NXT-ID is more favorable than Glu Mobile.

Insider & Institutional Ownership

30.1% of Glu Mobile shares are held by institutional investors. Comparatively, 1.1% of NXT-ID shares are held by institutional investors. 5.6% of Glu Mobile shares are held by company insiders. Comparatively, 28.1% of NXT-ID shares are held by company 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.

Risk & Volatility

Glu Mobile has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, NXT-ID has a beta of -5.04, suggesting that its stock price is 604% less volatile than the S&P 500.

Profitability

This table compares Glu Mobile and NXT-ID’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Glu Mobile -50.11% -36.94% -26.41%
NXT-ID -56.23% N/A -29.56%

Summary

Glu Mobile beats NXT-ID on 7 of the 12 factors compared between the two stocks.

About Glu Mobile

Glu Mobile Inc. develops, publishes and markets a portfolio of mobile games. The Company develops and publishes a portfolio of mobile games designed to appeal to a cross section of the users of smartphones and tablet devices. Its portfolio of mobile games is spread across various genres, including Fashion and Celebrity, Food, Sports and Action, Social Networking and Home. Its portfolio of games include Contract Killer, Cooking Dash, Covet Fashion, Deer Hunter, Design Home, QuizUp, Racing Rivals and Tap Sports Baseball, as well as games based on third party licensed brands, including Gordon Ramsay DASH, Kendall & Kylie, and Kim Kardashian: Hollywood. The Company works directly with other application developers to include advertising for their applications in its games, and the developers pay them based on either the number of impressions in its games or the number of users downloading the developer’s application.

About NXT-ID

Nxt-ID, Inc. is a technology company. The Company is focused on products, solutions and services for security on mobile devices. The Company’s core technologies consist of those that support digital payments, biometric identification, encryption, sensors and miniaturization. It has three lines of business: mobile commerce (m-commerce), primarily through the application of secure digital payment technologies; biometric access control applications, and Department of Defense contracting. It intends to use its core biometric facial and voice recognition algorithms to develop security applications (both cloud based and locally hosted) that can be used for companies, as well as individuals, law enforcement, the defense industry, and the United States Department of Defense. Its offerings include Wocket, a physical electronic smart wallet; the NXT Smartcard, a standalone smartcard; Wi-Mag, an antenna and payment technology, and 3D FaceMatch and 3D SketchArtist facial recognition products.

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