Comparing Cycurion (NASDAQ:CYCU) & Grid Dynamics (NASDAQ:GDYN)

Cycurion (NASDAQ:CYCU) and Grid Dynamics (NASDAQ:GDYN) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cycurion and Grid Dynamics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cycurion	1	1	1	0	2.00
Grid Dynamics	2	1	4	1	2.50

Cycurion presently has a consensus price target of $56.00, suggesting a potential upside of 1,365.97%. Grid Dynamics has a consensus price target of $9.40, suggesting a potential upside of 17.21%. Given Cycurion’s higher probable upside, equities research analysts clearly believe Cycurion is more favorable than Grid Dynamics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cycurion	-98.83%	-98.55%	-46.19%
Grid Dynamics	0.68%	1.90%	1.66%

Institutional & Insider Ownership

6.6% of Cycurion shares are owned by institutional investors. Comparatively, 71.2% of Grid Dynamics shares are owned by institutional investors. 4.6% of Cycurion shares are owned by company insiders. Comparatively, 6.5% of Grid Dynamics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Cycurion and Grid Dynamics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cycurion	$15.13 million	0.82	-$23.67 million	($24.64)	-0.16
Grid Dynamics	$422.58 million	1.54	$9.67 million	$0.02	401.00

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

Risk & Volatility

Cycurion has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Grid Dynamics has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Summary

Grid Dynamics beats Cycurion on 14 of the 15 factors compared between the two stocks.

About Cycurion

Cycurion is a global leading provider of Network Communications and Information Technology Security Solutions. Our mission is to develop and deliver world-class, cutting-edge solutions for our clients, regardless of size or complication, expressly optimizing your IT environment to meet the business need and to keep projects on track and on budget.

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.