Contrasting DouYu International (NASDAQ:DOYU) & Grindr (NYSE:GRND)

Grindr (NYSE:GRND) and DouYu International (NASDAQ:DOYU) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Institutional and Insider Ownership

7.2% of Grindr shares are owned by institutional investors. Comparatively, 17.9% of DouYu International shares are owned by institutional investors. 76.4% of Grindr shares are owned by company insiders. Comparatively, 17.3% of DouYu International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Grindr has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, DouYu International has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grindr	-16.27%	-177.83%	9.57%
DouYu International	-4.39%	-2.92%	-2.38%

Analyst Ratings

This is a breakdown of current ratings and target prices for Grindr and DouYu International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grindr	0	0	4	0	3.00
DouYu International	2	0	0	0	1.00

Grindr presently has a consensus price target of $19.75, indicating a potential upside of 6.09%. DouYu International has a consensus price target of $10.25, indicating a potential downside of 35.37%. Given Grindr’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Grindr is more favorable than DouYu International.

Earnings and Valuation

This table compares Grindr and DouYu International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grindr	$319.10 million	10.30	-$55.77 million	($0.35)	-53.19
DouYu International	$778.94 million	0.64	$5.00 million	($0.88)	-18.02

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

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.

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.