Comparing Gravity (NASDAQ:GRVY) and NantHealth (NASDAQ:NH)

Gravity (NASDAQ:GRVY) and NantHealth (NASDAQ:NH) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Volatility and Risk

Gravity has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, NantHealth has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.

Insider & Institutional Ownership

9.9% of Gravity shares are owned by institutional investors. Comparatively, 4.5% of NantHealth shares are owned by institutional investors. 61.3% of NantHealth shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Gravity and NantHealth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gravity	0	0	0	0	N/A
NantHealth	0	0	0	0	N/A

Profitability

This table compares Gravity and NantHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gravity	16.96%	46.65%	36.71%
NantHealth	-94.67%	N/A	-39.82%

Earnings and Valuation

This table compares Gravity and NantHealth’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gravity	$680.35 billion	0.00	$105.61 million	$13.23	4.85
NantHealth	$67.68 million	0.00	-$67.78 million	($7.65)	0.00

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

Summary

Gravity beats NantHealth on 8 of the 11 factors compared between the two stocks.

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.

About NantHealth

NantHealth, Inc. engages in the provision of enterprise solutions that help businesses transform complex data into actionable insights. It is also involved in marketing solutions as a comprehensive integrated solution that includes clinical decision support, payer engagement solutions, data analysis, and network monitoring and management. The company was founded by Patrick Soon-Shiong on July 7, 2010 and is headquartered in Morrisville, NC.