Critical Survey: Gravity (NASDAQ:GRVY) versus Urgent.ly (NASDAQ:ULY)

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

Earnings and Valuation

This table compares Urgent.ly and Gravity”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Urgent.ly	$142.91 million	0.03	$74.73 million	($39.38)	-0.10
Gravity	$516.65 billion	0.00	$105.61 million	$8.98	6.77

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

Volatility & Risk

Urgent.ly has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Gravity has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Urgent.ly	59.29%	N/A	-73.06%
Gravity	14.98%	34.76%	28.79%

Institutional & Insider Ownership

28.3% of Urgent.ly shares are owned by institutional investors. Comparatively, 9.9% of Gravity shares are owned by institutional investors. 11.4% of Urgent.ly shares are owned by 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 Ratings

This is a breakdown of recent ratings and recommmendations for Urgent.ly and Gravity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Urgent.ly	0	0	1	0	3.00
Gravity	0	0	0	0	0.00

Urgent.ly currently has a consensus price target of $12.00, suggesting a potential upside of 206.91%. Given Urgent.ly’s stronger consensus rating and higher probable upside, analysts plainly believe Urgent.ly is more favorable than Gravity.

About Urgent.ly

Urgent.ly Inc. offers mobility assistance software platform for roadside assistance in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its services include car lockout, tire changes, towing, stuck in ditch and winch services, motorcycle towing, electric vehicle towing, jump start, and gas delivery. The company's software platform combines location-based services, real-time data, AI and machine-to-machine communication to provide roadside assistance solutions. It serves automotive, insurance, telematics, and other transportation-focused verticals. Urgent.ly Inc. was incorporated in 2013 and is headquartered in Vienna, Virginia.

About Gravity

Gravity Co., Ltd. develops and publishes online and mobile games worldwide. It offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Landverse. Its mobile games portfolio includes Ragnarok M; Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; Ragnarok Arena; WITH ISLAND; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; Generation Zombie; Ragnarok Idle Adventure; Ragnarok 20 Heroes; White Chord; WITH: Whale In The High; Ragnarok Lost Memories; and Paladog Tactics. It 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; Pigromance for Steam, Stove, Nintendo Switch, Xbox One, Xbox Series X|S; ALTF4 11 for Steam and Stove; Wetory for Steam, Stove, Nintedo Switch; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Haunted House and Pororo: The Little Penguin, and Kongsuni; and markets dolls, stationery, food, and other character based merchandises, as well as game manuals, monthly magazines, and other publications; PC games, including Puzzle Platformer, ALTF42, Ragnarok ZERO, KAMiBAKO-Mythology of Cube, Psychodemic, and FINAL KNIGHT; social network games and mobile games, such as Ragnarok V: Returns, Ragnarok: The Lost Memories and Ragnrok Begins in-house; and web-browser-based games, such as Ragnarok Prequel and Ragnarok Prequel II. 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.