Everbridge (NASDAQ: EVBG) and Gridsum Holding (NASDAQ:GSUM) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Everbridge and Gridsum Holding, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everbridge 0 0 11 0 3.00
Gridsum Holding 0 0 3 0 3.00

Everbridge currently has a consensus price target of $25.80, indicating a potential upside of 11.59%. Gridsum Holding has a consensus price target of $20.87, indicating a potential upside of 119.19%. Given Gridsum Holding’s higher possible upside, analysts clearly believe Gridsum Holding is more favorable than Everbridge.

Profitability

This table compares Everbridge and Gridsum Holding’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everbridge -16.72% -26.39% -9.90%
Gridsum Holding -26.87% -16.80% -10.15%

Earnings and Valuation

This table compares Everbridge and Gridsum Holding’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Everbridge $89.08 million 7.29 -$10.77 million ($0.63) -36.70
Gridsum Holding $70.93 million 4.12 -$8.77 million ($0.90) -10.58

Gridsum Holding has higher revenue, but lower earnings than Everbridge. Everbridge is trading at a lower price-to-earnings ratio than Gridsum Holding, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

51.2% of Everbridge shares are owned by institutional investors. Comparatively, 30.5% of Gridsum Holding shares are owned by institutional investors. 41.4% of Everbridge shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Everbridge beats Gridsum Holding on 8 of the 11 factors compared between the two stocks.

About Everbridge

Everbridge, Inc. is a global software company. The Company provides enterprise software applications that automate and accelerate organizations’ operational response to critical events in order to keep people safe and businesses running. During public safety threats, such as active shooter situations, terrorist attacks or severe weather conditions, as well as critical business events, such as information technology (IT) outages, cyber-attacks or other incidents, such as product recalls or supply-chain interruptions, its Software as a Service (SaaS)-based platform enables its customers to aggregate and assess threat data, locate people at risk and responders able to assist, automate the execution of pre-defined communications processes, and track progress on executing response plans. Its platform provides organizations with the ability to send and receive notifications based on the last known locations of people, not just based on a static office or home address.

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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