SciQuest (NASDAQ: SQI) and GRIDSUM HOLDING (NASDAQ:GSUM) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Profitability

This table compares SciQuest and GRIDSUM HOLDING’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SciQuest 3.93% 2.23% 1.59%
GRIDSUM HOLDING -26.87% -16.80% -10.15%

Institutional & Insider Ownership

30.5% of GRIDSUM HOLDING shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for SciQuest and GRIDSUM HOLDING, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SciQuest 0 0 0 0 N/A
GRIDSUM HOLDING 0 0 3 0 3.00

GRIDSUM HOLDING has a consensus price target of $20.87, suggesting a potential upside of 123.89%. Given GRIDSUM HOLDING’s higher probable upside, analysts clearly believe GRIDSUM HOLDING is more favorable than SciQuest.

Valuation & Earnings

This table compares SciQuest and GRIDSUM HOLDING’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SciQuest N/A N/A N/A $0.11 161.38
GRIDSUM HOLDING $72.53 million N/A -$8.97 million ($0.90) -10.36

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

SciQuest Company Profile

SciQuest, Inc. is a United States-based public provider of spend management solutions. The Company’s offers a range of solutions, such as Spend Director, Spend Radar, Sourcing Director, Advanced Sourcing Optimizer, Total Contract Manager, Total Supplier Manager, Enterprise Reagent Manager, Accounts Payable Director, Supplier Network and Portfolio Savings Manager. Its Spend Director is an e-procurement software, which allows users’ to integrate and automate processes, suppliers, compliance and workflows. Its Portfolio Savings Manager is a cloud-based savings management software that integrates project forecasting, initiative approval workflows and real-time savings. Its chemical inventory management software, Enterprise Reagent Manager (ERM), allows scientific staff in the organization to find, source and track commercial and proprietary chemicals, reagents and lab supplies. Its Total Contract Manager is a Contract Lifecycle Management solution that offers real-time updates.

GRIDSUM HOLDING Company Profile

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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