Locafy (NASDAQ:LCFY) vs. Grindr (NYSE:GRND) Head-To-Head Analysis

Locafy (NASDAQ:LCFY) and Grindr (NYSE:GRND) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Volatility & Risk

Locafy has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, Grindr has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Locafy shares are held by institutional investors. Comparatively, 7.2% of Grindr shares are held by institutional investors. 28.7% of Locafy shares are held by company insiders. Comparatively, 76.4% of Grindr shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Locafy and Grindr”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Locafy	$3.85 million	2.32	-$1.96 million	($1.23)	-5.26
Grindr	$319.10 million	9.95	-$55.77 million	($0.35)	-51.36

Locafy has higher earnings, but lower revenue than Grindr. Grindr is trading at a lower price-to-earnings ratio than Locafy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Locafy and Grindr’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Locafy	-58.48%	-64.65%	-36.58%
Grindr	-16.27%	-177.83%	9.57%

Analyst Recommendations

This is a breakdown of current recommendations for Locafy and Grindr, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Locafy	0	0	0	0	0.00
Grindr	0	0	4	0	3.00

Grindr has a consensus target price of $19.75, indicating a potential upside of 9.87%. Given Grindr’s stronger consensus rating and higher possible upside, analysts plainly believe Grindr is more favorable than Locafy.

Summary

Grindr beats Locafy on 10 of the 14 factors compared between the two stocks.

About Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.

About Grindr

Grindr Inc. operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version. Grindr Inc. was founded in 2009 and is headquartered in West Hollywood, California.