Head-To-Head Analysis: Gravity (GRVY) & Summer Infant (SUMR)

Gravity (NASDAQ: GRVY) and Summer Infant (NASDAQ:SUMR) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Gravity and Summer Infant, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gravity 0 0 0 0 N/A
Summer Infant 0 0 3 0 3.00

Summer Infant has a consensus price target of $2.75, indicating a potential upside of 120.00%. Given Summer Infant’s higher probable upside, analysts plainly believe Summer Infant is more favorable than Gravity.

Volatility and Risk

Gravity has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Summer Infant has a beta of -0.19, indicating that its share price is 119% less volatile than the S&P 500.

Profitability

This table compares Gravity and Summer Infant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gravity 9.78% 26.08% 13.50%
Summer Infant -2.66% 0.43% 0.06%

Earnings and Valuation

This table compares Gravity and Summer Infant’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gravity $42.70 million 5.68 $200,000.00 $2.26 30.91
Summer Infant $194.33 million 0.12 -$4.32 million ($0.27) -4.63

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

Insider and Institutional Ownership

7.3% of Gravity shares are held by institutional investors. Comparatively, 49.7% of Summer Infant shares are held by institutional investors. 3.3% of Summer Infant shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Gravity beats Summer Infant on 8 of the 13 factors compared between the two stocks.

About Gravity

Gravity Co., Ltd. is a developer, distributor and publisher of online games in Japan and Taiwan. The Company’s segments include online games, mobile games and other. Its principal product includes Ragnarok Online, which is a multiplayer online role playing game. It categorizes products into over three categories, such as online games; mobile games and applications, and other games and game-related products and services, including character-based merchandise and animation. It offers over five online games, such as Ragnarok Online, Ragnarok Online II, Requiem, Dragonica (Dragon Saga) and R.O.S.E. Online, which are action adventure massively multiplayer online role-playing games (MMORPG). It develops mobile games, including Ragnarok Online-Uprising: Valkyrie, Ragnarok Online Mobile Story and Ragnarok Violet, and also publishes mobile games licensed from third parties. It provides games for game consoles and handheld game consoles, such as Nintendo DS, Xbox 360 and the PlayStation series.

About Summer Infant

Summer Infant, Inc. is an infant and juvenile products company. The Company is engaged in the juvenile industry, providing mothers and caregivers a range of products to care for babies and toddlers. As of December 31, 2016, it marketed over 1,100 products in several product categories, including monitoring, safety, nursery, baby gear and feeding products. It markets its products, under its Summer Infant, SwaddleMe and Born Free brand names. Its anchor products in its product categories include monitoring, such as wireless fidelity (Wi-Fi)/Internet, video, audio and prenatal; safety, including gates, bath, potties, boosters and positioners; nursery, such as swaddle, travel accessories, safe sleep, soothers and sleep aides; baby gear, including strollers, bassinets, high chairs and playards, and feeding products, such as bottles, drinking cups, bibs and placemats, electronics and pacifiers. It sells its products across the globe to national retailers, as well as independent retailers.

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