Financial Survey: SecureAlert (OTCMKTS:TRCK) versus Grid Dynamics (NASDAQ:GDYN)

SecureAlert (OTCMKTS:TRCK) and Grid Dynamics (NASDAQ:GDYN) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Valuation & Earnings

This table compares SecureAlert 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
SecureAlert	$36.89 million	0.10	-$3.08 million	($0.12)	-2.68
Grid Dynamics	$350.57 million	1.95	$4.04 million	$0.19	42.47

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SecureAlert	0	0	0	0	0.00
Grid Dynamics	0	0	4	0	3.00

Grid Dynamics has a consensus price target of $15.75, suggesting a potential upside of 95.17%. Given Grid Dynamics’ stronger consensus rating and higher possible upside, analysts clearly believe Grid Dynamics is more favorable than SecureAlert.

Volatility & Risk

SecureAlert has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500. Comparatively, Grid Dynamics has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SecureAlert	-3.91%	-11.46%	3.48%
Grid Dynamics	4.37%	1.89%	1.64%

Insider & Institutional Ownership

5.8% of SecureAlert shares are held by institutional investors. Comparatively, 71.2% of Grid Dynamics shares are held by institutional investors. 11.1% of SecureAlert shares are held by insiders. Comparatively, 7.2% of Grid Dynamics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Grid Dynamics beats SecureAlert on 12 of the 14 factors compared between the two stocks.

About SecureAlert

Track Group, Inc., together with its subsidiaries, designs, manufactures, and markets location tracking devices in the United States, Latin America, and internationally. The company's products include ReliAlert XC4, a GPS monitoring device; and ReliAlert XC 3, which enables agencies to track offender movements and communicate directly with offenders in real-time through on-board two/three-way voice communication technology. It also provides IntelliTrack, a secure state of the art device-agnostic platform; IntelliTrack Mobile, a mobile application of the Intellitrack software is available for Android and iOS devices; TrackerPAL, a cloud-based monitoring system; TrackerPAL Mobile, a mobile application of the TrackerPAL software for Android and iOS devices; data analytics services; and BACtrack, a smartphone-based remote alcohol monitoring system. In addition, the company offers Empower smartphone application that provides victim and survivor support by creating a mobile geo-zone around a survivor of domestic abuse and communicates with the offender's tracking device; Socrates 360, a platform that offers various content and service; SecureCuff steel bands; and RF Beacon, a self-contained and short-range transmitting station that provides a radio frequency signal communicating with assigned offender GPS devices, as well as product support services. Further, the company develops and sells various related software, services, accessories, networking solutions, and monitoring applications. The company was formerly known as SecureAlert, Inc. and changed its name to Track Group, Inc. in May 2015. Track Group, Inc. was incorporated in 1995 and is headquartered in Naperville, Illinois.

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.