Head to Head Comparison: Grom Social Enterprises (NASDAQ:GROM) and Pinterest (NYSE:PINS)

Grom Social Enterprises (NASDAQ:GROM) and Pinterest (NYSE:PINS) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares Grom Social Enterprises and Pinterest”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grom Social Enterprises	$3.72 million	0.00	-$12.53 million	($11.67)	0.00
Pinterest	$3.65 billion	5.77	$1.86 billion	$2.69	11.53

Pinterest has higher revenue and earnings than Grom Social Enterprises. Grom Social Enterprises is trading at a lower price-to-earnings ratio than Pinterest, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

15.9% of Grom Social Enterprises shares are owned by institutional investors. Comparatively, 88.8% of Pinterest shares are owned by institutional investors. 0.0% of Grom Social Enterprises shares are owned by insiders. Comparatively, 7.1% of Pinterest shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Grom Social Enterprises and Pinterest, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grom Social Enterprises	0	0	0	0	0.00
Pinterest	0	7	23	0	2.77

Pinterest has a consensus target price of $43.17, indicating a potential upside of 39.19%. Given Pinterest’s stronger consensus rating and higher probable upside, analysts clearly believe Pinterest is more favorable than Grom Social Enterprises.

Profitability

This table compares Grom Social Enterprises and Pinterest’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grom Social Enterprises	N/A	N/A	N/A
Pinterest	51.07%	8.10%	6.97%

Risk and Volatility

Grom Social Enterprises has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Pinterest has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Summary

Pinterest beats Grom Social Enterprises on 13 of the 14 factors compared between the two stocks.

About Grom Social Enterprises

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company in the United States and Philippines. It operates through three segments: Animation, Original Content, and Social and Technology. The company operates a social media network for children under the age of 13 years. It also produces animated films and televisions series; and provides web filtering services to schools and government agencies, as well as acquires, develops, and builds commercial potential of kids and family entertainment properties and associated business opportunities. Grom Social Enterprises, Inc. was founded in 2012 and is headquartered in Boca Raton, Florida.

About Pinterest

Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.