Contrasting Grid Dynamics (NASDAQ:GDYN) and Autodesk (NASDAQ:ADSK)

Autodesk (NASDAQ:ADSK) and Grid Dynamics (NASDAQ:GDYN) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Autodesk	18.30%	53.87%	12.31%
Grid Dynamics	1.15%	-0.33%	-0.29%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Autodesk and Grid Dynamics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autodesk	0	8	15	0	2.65
Grid Dynamics	0	0	5	1	3.17

Autodesk presently has a consensus target price of $324.64, suggesting a potential upside of 22.35%. Grid Dynamics has a consensus target price of $19.60, suggesting a potential upside of 42.55%. Given Grid Dynamics’ stronger consensus rating and higher probable upside, analysts clearly believe Grid Dynamics is more favorable than Autodesk.

Institutional & Insider Ownership

90.2% of Autodesk shares are owned by institutional investors. Comparatively, 71.2% of Grid Dynamics shares are owned by institutional investors. 0.1% of Autodesk shares are owned by insiders. Comparatively, 7.2% of Grid Dynamics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Autodesk and Grid Dynamics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autodesk	$6.13 billion	9.22	$906.00 million	$5.13	51.72
Grid Dynamics	$350.57 million	3.29	-$1.76 million	$0.04	343.75

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

Volatility & Risk

Autodesk has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Grid Dynamics has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Summary

Autodesk beats Grid Dynamics on 10 of the 15 factors compared between the two stocks.

About Autodesk

Autodesk, Inc. provides 3D design, engineering, and entertainment technology solutions worldwide. The company offers AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects; BuildingConnected, a SaaS preconstruction solution; AutoCAD, a software for professional design, drafting, detailing, and visualization; AutoCAD LT, a drafting and detailing software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool; and Industry Collections tools for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment collection industries. It also provides Inventor tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; Vault, a data management software to manage data in one central location, accelerate design processes, and streamline internal/external collaboration; Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; and ShotGrid, a cloud-based software for review and production tracking in the media and entertainment industry. It sells its products and services to customers directly, as well as through a network of resellers and distributors. Autodesk, Inc. was incorporated in 1982 and is headquartered in San Francisco, California.

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.