Comparing Intellicheck (NYSE:IDN) and Grid Dynamics (NASDAQ:GDYN)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grid Dynamics	$328.36 million	5.50	-$1.76 million	$0.03	730.33
Intellicheck	$19.24 million	2.98	-$1.98 million	($0.03)	-96.67

Grid Dynamics has higher revenue and earnings than Intellicheck. Intellicheck 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, 42.8% of Intellicheck shares are owned by institutional investors. 7.2% of Grid Dynamics shares are owned by insiders. Comparatively, 8.9% of Intellicheck shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grid Dynamics	0.74%	0.15%	0.13%
Intellicheck	-3.37%	-1.59%	-1.23%

Risk & Volatility

Grid Dynamics has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Intellicheck has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Grid Dynamics and Intellicheck, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grid Dynamics	0	0	5	1	3.17
Intellicheck	0	2	1	0	2.33

Grid Dynamics currently has a consensus price target of $18.33, suggesting a potential downside of 16.32%. Intellicheck has a consensus price target of $3.33, suggesting a potential upside of 14.94%. Given Intellicheck’s higher probable upside, analysts plainly believe Intellicheck is more favorable than Grid Dynamics.

Summary

Grid Dynamics beats Intellicheck 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 Intellicheck

Intellicheck, Inc., a technology company, provides on-demand digital identity validation solutions for KYC, fraud, and age verification needs in North America. The company offers solutions for digital and physical identities for financial services, fintech companies, BNPL providers, e-commerce and retail commerce businesses, law enforcement, and government agencies. It provides identity systems products, including commercial identification products, such as Intellicheck Platform, an identity solution that checks whether an ID is valid, matches the ID to the person presenting it, and provides a risk score to determine the risk of doing business with that person; IDN-Portal, an Intellicheck-branded identity validation application that provides the ability to scan an ID using a mobile phone; IDN-Portal+ that offers document validation, retail POS integration, additional data for analytics and analysis, and online validation, and other features; IDN-Direct that provides access to additional data and the ability to use the platform's Risk Score capability to help with decision-making; and Intellicheck mobile app, which provides the ability to login and scan an ID. The company also offers State Aware Software solution, which provides or restricts information that is electronically scanned from an ID based on the electronic reading laws according to the state in which the ID is scanned; data collection devices that enable its software applications to be used on a variety of commercially available credit card terminals, PDAs, tablets, laptops, desktops, mobile phones, and point-of-sale terminals; and instant credit application kiosk software applications. It serves government, military, and commercial markets. The company was formerly known as Intellicheck Mobilisa, Inc. and changed its name to Intellicheck, Inc. in May 2017. Intellicheck, Inc. was incorporated in 1994 and is headquartered in Melville, New York.