Pinterest (NYSE:PINS) vs. Grom Social Enterprises (NASDAQ:GROM) Head to Head Comparison

Pinterest (NYSE:PINS) and Grom Social Enterprises (NASDAQ:GROM) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Volatility & Risk

Pinterest has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Grom Social Enterprises has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.

Insider and Institutional Ownership

88.8% of Pinterest shares are held by institutional investors. Comparatively, 15.9% of Grom Social Enterprises shares are held by institutional investors. 7.1% of Pinterest shares are held by company insiders. Comparatively, 0.0% of Grom Social Enterprises shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Pinterest and Grom Social Enterprises”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinterest	$3.65 billion	5.77	$1.86 billion	$2.69	11.53
Grom Social Enterprises	$3.72 million	0.00	-$12.53 million	($11.67)	0.00

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

Profitability

This table compares Pinterest and Grom Social Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinterest	51.07%	8.10%	6.97%
Grom Social Enterprises	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Pinterest and Grom Social Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinterest	0	7	23	0	2.77
Grom Social Enterprises	0	0	0	0	0.00

Pinterest presently has a consensus target price of $43.17, indicating a potential upside of 39.19%. Given Pinterest’s stronger consensus rating and higher possible upside, analysts clearly believe Pinterest is more favorable than Grom Social Enterprises.

Summary

Pinterest beats Grom Social Enterprises on 13 of the 14 factors compared between the two stocks.

About Pinterest

Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

About Grom Social Enterprises

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company in the United States and Philippines. It operates through three segments: Animation, Original Content, and Social and Technology. The company operates a social media network for children under the age of 13 years. It also produces animated films and televisions series; and provides web filtering services to schools and government agencies, as well as acquires, develops, and builds commercial potential of kids and family entertainment properties and associated business opportunities. Grom Social Enterprises, Inc. was founded in 2012 and is headquartered in Boca Raton, Florida.