Analyzing Fobi AI (OTCMKTS:FOBIF) and Grid Dynamics (NASDAQ:GDYN)

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

Institutional & Insider Ownership

71.2% of Grid Dynamics shares are held by institutional investors. 6.5% of Grid Dynamics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Fobi AI has a beta of -0.43, indicating that its share price is 143% less volatile than the S&P 500. Comparatively, Grid Dynamics has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fobi AI	N/A	N/A	N/A
Grid Dynamics	1.27%	1.20%	1.05%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Fobi AI and Grid Dynamics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fobi AI	0	0	0	0	0.00
Grid Dynamics	2	0	5	0	2.43

Grid Dynamics has a consensus price target of $10.00, indicating a potential upside of 72.12%. Given Grid Dynamics’ stronger consensus rating and higher possible upside, analysts clearly believe Grid Dynamics is more favorable than Fobi AI.

Valuation & Earnings

This table compares Fobi AI and Grid Dynamics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fobi AI	$370,000.00	32.72	-$800,000.00	($0.02)	-2.41
Grid Dynamics	$411.83 million	1.20	$9.67 million	$0.10	58.10

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

Summary

Grid Dynamics beats Fobi AI on 13 of the 14 factors compared between the two stocks.

About Fobi AI

Fobi AI Inc., together with its subsidiaries, operates as a technology and data intelligence company in North America and Europe. It provides software as a service; consulting and development services; and resells, refers, and licenses its products. The company also offers mobile wallet solutions, digital coupons, and customer insights solutions. It serves various industries, including the hospitality and tourism industries. The company was formerly known as Loop Insights Inc. Fobi AI Inc. is based in Vancouver, 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.