Comparing Grid Dynamics (NASDAQ:GDYN) & Twilio (NYSE:TWLO)

Grid Dynamics (NASDAQ:GDYN) and Twilio (NYSE:TWLO) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Grid Dynamics and Twilio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grid Dynamics	2	1	4	1	2.50
Twilio	1	2	21	3	2.96

Grid Dynamics currently has a consensus price target of $9.40, indicating a potential upside of 21.29%. Twilio has a consensus price target of $249.68, indicating a potential upside of 5.07%. Given Grid Dynamics’ higher possible upside, analysts clearly believe Grid Dynamics is more favorable than Twilio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grid Dynamics	0.68%	1.90%	1.66%
Twilio	20.61%	5.09%	4.15%

Earnings & Valuation

This table compares Grid Dynamics and Twilio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grid Dynamics	$411.83 million	1.53	$9.67 million	$0.02	387.50
Twilio	$5.57 billion	6.47	$33.83 million	$7.18	33.10

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

Institutional and Insider Ownership

71.2% of Grid Dynamics shares are owned by institutional investors. Comparatively, 84.3% of Twilio shares are owned by institutional investors. 6.5% of Grid Dynamics shares are owned by insiders. Comparatively, 0.2% of Twilio shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Grid Dynamics has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Twilio has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Summary

Twilio beats Grid Dynamics on 12 of the 15 factors compared between the two stocks.

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.

About Twilio

Twilio Inc., together with its subsidiaries, provides customer engagement platform solutions in the United States and internationally. It operates through two segments, Twilio Communications and Twilio Segment. The company provides various application programming interfaces and software solutions for communications between customers and end users, including messaging, voice, email, flex, marketing campaigns, and user identity and authentication. It also offers software products to build direct, personalized relationships with their end users, such as segment, a platform that provides tools for first-party data by unifying real-time information collected; and engage, an automation platform for the delivery of omnichannel campaigns. Twilio Inc. was incorporated in 2008 and is headquartered in San Francisco, California.