Grid Dynamics (NASDAQ:GDYN) vs. Draganfly (NASDAQ:DPRO) Head to Head Review

Draganfly (NASDAQ:DPRO) and Grid Dynamics (NASDAQ:GDYN) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Insider & Institutional Ownership

10.4% of Draganfly shares are owned by institutional investors. Comparatively, 71.2% of Grid Dynamics shares are owned by institutional investors. 6.5% of Grid Dynamics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Draganfly has a beta of 2.64, meaning that its stock price is 164% more volatile than the S&P 500. Comparatively, Grid Dynamics has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Profitability

This table compares Draganfly and Grid Dynamics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Draganfly	-243.20%	-71.81%	-58.36%
Grid Dynamics	3.42%	1.74%	1.52%

Earnings & Valuation

This table compares Draganfly and Grid Dynamics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Draganfly	$4.79 million	8.26	-$10.13 million	($1.85)	-3.94
Grid Dynamics	$350.57 million	2.00	$4.04 million	$0.15	55.13

Grid Dynamics has higher revenue and earnings than Draganfly. Draganfly is trading at a lower price-to-earnings ratio than Grid Dynamics, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Draganfly and Grid Dynamics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Draganfly	0	0	2	2	3.50
Grid Dynamics	0	2	3	0	2.60

Draganfly currently has a consensus price target of $16.75, indicating a potential upside of 129.77%. Grid Dynamics has a consensus price target of $11.33, indicating a potential upside of 37.04%. Given Draganfly’s stronger consensus rating and higher possible upside, research analysts clearly believe Draganfly is more favorable than Grid Dynamics.

Summary

Grid Dynamics beats Draganfly on 10 of the 15 factors compared between the two stocks.

About Draganfly

Draganfly Inc. develops, manufactures, and sells cutting-edge unmanned and remote data collection and analysis platforms and systems in the United States and Canada. The company offers quadcopters, fixed-wing aircraft, ground-based robots, handheld controllers, and flight training, as well as software used for tracking, live streaming, and data collection. It also operates a health/telehealth platform that is a set of technologies that remotely detect various biometrics, such as heart rate, oxygen saturation, and blood pressure. In addition, the company provides sanitary spraying services to indoor and outdoor public gathering spaces, including sport stadiums and fields, and custom engineering, training, consulting, flight, and geographic information systems data services. It serves public safety, agriculture, industrial inspections, and mapping and surveying markets. Draganfly Inc. was founded in 1998 and is headquartered in Saskatoon, Canada.

About Grid Dynamics

Grid Dynamics Holdings, Inc., together with its subsidiaries, provides technology consulting, platform and product engineering, and analytics services in North America, Europe, and internationally. It offers cloud platform and product engineering services, such as architecting, designing, and building scalable and secure cloud-based platforms and business applications; and AI/machine learning and data platform engineering services that build platforms to facilitate batch and streaming data ingestion, quality governance, orchestration, semantic modeling, observability, and analysis at scale. The company provides digital engagement services, including digital ecosystem design and implementation; and supply chain, Internet of Thing, and advanced manufacturing, which focuses on transforming traditional operations into smart and connected ecosystems. It serves customers that operate in the tech, media, telecommunications, retail, consumer packaged goods, manufacturing, and finance industries. The company was formerly known as ChaSerg Technology Acquisition Corp. and changed its name to Grid Dynamics Holdings, Inc. Grid Dynamics Holdings, Inc. was founded in 2006 and is headquartered in San Ramon, California.