Symantec (NASDAQ:SYMC) and Gridsum (NASDAQ:GSUM) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
87.6% of Symantec shares are held by institutional investors. Comparatively, 31.4% of Gridsum shares are held by institutional investors. 1.9% of Symantec shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent recommendations for Symantec and Gridsum, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Symantec | 2 | 18 | 3 | 0 | 2.04 |
Gridsum | 0 | 0 | 0 | 0 | N/A |
Symantec currently has a consensus target price of $23.23, indicating a potential upside of 10.50%. Given Symantec’s higher possible upside, equities analysts plainly believe Symantec is more favorable than Gridsum.
Earnings & Valuation
This table compares Symantec and Gridsum’s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Symantec | $4.85 billion | 2.77 | $1.14 billion | $0.95 | 22.13 |
Gridsum | $72.16 million | 0.77 | -$36.73 million | N/A | N/A |
Symantec has higher revenue and earnings than Gridsum.
Profitability
This table compares Symantec and Gridsum’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Symantec | 25.95% | 13.99% | 4.76% |
Gridsum | N/A | N/A | N/A |
Risk & Volatility
Symantec has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Gridsum has a beta of 3.6, suggesting that its stock price is 260% more volatile than the S&P 500.
Dividends
Symantec pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. Gridsum does not pay a dividend. Symantec pays out 31.6% of its earnings in the form of a dividend.
Summary
Symantec beats Gridsum on 11 of the 13 factors compared between the two stocks.
About Symantec
Symantec Corporation provides cybersecurity products, services, and solutions worldwide. The company operates through two segments, Enterprise Security and Consumer Digital Safety. The Enterprise Security segment provides endpoint and information protection products, including endpoint security, advanced threat protection, and information protection solutions and their related support services; and network and Web security products, such as network security, Web security, and cloud security solutions and their related support services. It also offers consulting, premium support, and cyber security services. The Consumer Digital Safety segment provides Norton Security solutions as a subscription service providing protection for devices against malware, viruses, adware, and ransomware on various platforms; and LifeLock identity theft protection solution that provides identity monitoring, alerts, and restoration to its customers, as well as Norton Wi-Fi Privacy services. The company serves business, government, and public-sector customers; small, medium, and large enterprises; and individuals, households, and small businesses. It markets and sells its products and related services through direct sales force, direct marketing and co-marketing programs, e-commerce and telesales platforms, distributors, Internet-based resellers, system builders, Internet service providers, employee benefits providers, wireless carriers, retailers, original equipment manufacturers, and retail and online stores. Symantec Corporation has strategic alliance with Ernst & Young LLP to help organizations address intellectual property and data, as well as manage cyber risk. The company was founded in 1982 and is headquartered in Mountain View, California.
About Gridsum
Gridsum Holding Inc. provides data analysis software for enterprises and government agencies in China. Its proprietary distributed data architecture allows its customers to collect and analyze information; and Gridsum Big Data platform and Gridsum Prophet performs multi-dimensional correlation analysis and analyzes complex real-time events. The company offers Web Dissector to analyze customer Websites by monitoring and analyzing key performance indicators; Mobile Dissector to understand mobile app user activity; SEM Dissector for search engine marketing; SEO Dissector, a search engine optimization tool; Ad Dissector, an advertisement performance monitoring and optimization product; Contribution Dissector to track and analyze user behavior from original access to ultimate conversion; Audience Dissector, an audience analysis product; and Recommendation Engine, a data driven content recommendation solution. It also provides Government Web Dissector, a digital intelligence solution; Government Website Group Integrated Management Platform, an integrated management platform; Streaming Dissector, a real-time viewership analysis for digital online video; Video Dissector, an online video content analytics tool; TV Dissector, an analytics tool; Rating Plus, a television viewing data analytics tool; and Media Dissector, a mass, social, and user-generated content media monitoring and analytics tool. In addition, the company offers Law Dissector, a search and statistical analysis tool; Smart Push, a legal research tool; voice recognition and transcription system; Information Dissector, an insightful analytical system; Social Listening, a cloud-based social listening solution; Gridsum Dashboard, a data visualization tool; and Gridsum Report Center, an automated report generation and distribution tool. Further, it develops new media analytics and information discovery solutions to address customer needs. The company was founded in 2005 and is headquartered in Beijing, China.
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