Brightcove (NASDAQ:BCOV – Get Free Report) and Gravity (NASDAQ:GRVY – Get Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Risk & Volatility
Brightcove has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Gravity has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Brightcove and Gravity, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brightcove | 0 | 1 | 1 | 0 | 2.50 |
| Gravity | 0 | 0 | 0 | 0 | N/A |
Institutional & Insider Ownership
80.1% of Brightcove shares are held by institutional investors. Comparatively, 9.9% of Gravity shares are held by institutional investors. 3.7% of Brightcove shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Brightcove and Gravity’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brightcove | $200.86 million | 0.46 | -$22.89 million | ($0.22) | -9.36 |
| Gravity | $564.42 billion | 0.00 | $105.61 million | $13.23 | 4.66 |
Gravity has higher revenue and earnings than Brightcove. Brightcove is trading at a lower price-to-earnings ratio than Gravity, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Brightcove and Gravity’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brightcove | -4.28% | -8.86% | -3.88% |
| Gravity | 14.87% | 37.85% | 30.67% |
Summary
Gravity beats Brightcove on 8 of the 13 factors compared between the two stocks.
About Brightcove
Brightcove Inc. provides cloud-based streaming services the Americas, Europe, the Asia Pacific, Japan, India, and the Middle East. It offers Video Cloud, an online video streaming platform that enables its customers to publish, deliver, and distribute high-quality video to internet-connected devices. The company's solutions and products comprise Brightcove Marketing Studio, a video streaming solution; Brightcove Communications Studio for marketers and corporate communications professionals; Brightcove Media Studio, a solution for over-the-top (OTT) video services, media publishers, and leading broadcasters to monetize their media, live stream at scale, and nurture their audience lifecycle; Brightcove Audience Insights, a customer data platform for video streaming businesses; Zencoder, a cloud-based video encoding service; and Brightcove Beacon, a platform that enables its customers to launch premium OTT video streaming experiences, as well as Brightcove Marketplace. It also provides ad monetization; professional; customer success, support, and documentation; online and onsite training; and video.js and developer solutions. The company serves media companies, broadcasters, digital publishers, sports and entertainment companies, fashion and hospitality brands, faith-based institutions, retail and e-commerce businesses, and technology organizations, as well as government agencies, educational institutions, and non-profit organizations. Brightcove Inc. was incorporated in 2004 and is headquartered in Boston, Massachusetts.
About Gravity
Gravity Co., Ltd. develops and publishes online and mobile games in South Korea, Taiwan, Thailand, and the United States. The company offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Prequel II. Its mobile games portfolio includes Ragnarok M: Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; and Paladog Tactics. The company also provides console games, such as Ragnarok DS for Nintendo DS; Ragnarok: The Princess of Light and Darkness for PlayStation Portable; Ragnarok Odyssey for PlayStation Vita; Double Dragon II for Xbox 360; Ragnarok Odyssey Ace for PlayStation Vita and PlayStation 3; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Haunted House and Pororo: The Little Penguin; and markets dolls, stationery, food, and other character-based merchandises, as well as game manuals, monthly magazines, and other publications. Further, the company provides system development and maintenance services, as well as system integration services to third parties. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.
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