Financial analysis of Grab (NASDAQ:GRAB) and Limelight Networks (NASDAQ:LLNW)


Grab (NASDAQ:GRAB – Get Rating) and Limelight Networks (NASDAQ:LLNW – Get Rating) are both business services companies, but which is the best investment? We’ll compare the two companies based on institutional ownership strength, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Profitability

This table compares the net margins, return on equity, and return on assets of Grab and Limelight Networks.

Net margins Return on equity return on assets
Grab N / A -181.95% -113.92%
Networks in the limelight -22.60% -24.22% -10.80%

Insider and Institutional Ownership

46.3% of Grab’s shares are held by institutional investors. By comparison, 51.3% of Limelight Networks shares are held by institutional investors. 10.2% of Limelight Networks shares are held by insiders. Strong institutional ownership indicates that hedge funds, large money managers, and endowments believe a company is poised for long-term growth.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of Grab and Limelight Networks.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Grab $675.00 million 15.13 -$3.45 billion N / A N / A
Networks in the limelight $217.63 million 2.20 -$54.76 million ($0.39) -8.90

Limelight Networks has lower earnings, but higher earnings than Grab.

Analyst Recommendations

This is a breakdown of recent ratings for the Grab and Limelight networks, provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Grab 1 4 7 0 2.50
Networks in the limelight 1 1 5 1 2.75

Grab currently has a consensus price target of $7.21, indicating a potential upside of 163.94%. Limelight Networks has a consensus price target of $5.54, indicating a potential upside of 59.53%. Given the higher possible upside of Grab, analysts clearly believe that Grab is more favorable than Limelight Networks.

Risk and Volatility

Grab has a beta of 0.52, which means its stock price is 48% less volatile than the S&P 500. In comparison, Limelight Networks has a beta of 0.83, which means its stock price is 17% less volatile than the S&P 500.

Summary

Limelight Networks beats Grab on 8 out of 13 factors compared between the two stocks.

Enter company profile (Get a rating)

Grab Holdings Limited operates a transportation and financial technology platform in Southeast Asia. It offers a range of services, including mobility, food, parcel and grocery delivery services, mobile payments and financial services. The company was founded in 2012 and is based in Singapore.

Limelight Networks Company Profile (Get a rating)

Limelight Networks, Inc. provides content delivery network and related services in the Americas, Europe, Middle East, Africa and Asia-Pacific. The company operates private global networks with distributed computing resources and extensive connectivity to last-mile broadband network providers; provides live and on-demand video streaming services; and provides online video platforms that integrate and manage advanced video delivery. It also offers state-of-the-art computing services; cloud security services that provide defense against attacks from malicious websites and unauthorized access to content; and cloud storage services. Additionally, the company provides professional services; and other infrastructure services, such as transit, hardware, and rack space services. It serves companies operating in media, entertainment, games, technology and software, corporate, retail and other sectors. The company was founded in 2001 and is based in Tempe, Arizona.



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Sarah J. Greer