Head to Head Analysis: Cass Information Systems (NASDAQ:CASS) versus Grab (NASDAQ:GRAB)

Cass Information Systems (NASDAQ:CASS) and Grab (NASDAQ:GRAB) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

59.1% of Cass Information Systems shares are held by institutional investors. Comparatively, 55.5% of Grab shares are held by institutional investors. 2.8% of Cass Information Systems shares are held by company insiders. Comparatively, 3.6% of Grab shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Cass Information Systems and Grab’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cass Information Systems	$188.10 million	2.95	$30.06 million	$2.19	18.56
Grab	$2.36 billion	5.89	-$434.00 million	($0.07)	-50.56

Cass Information Systems has higher earnings, but lower revenue than Grab. Grab is trading at a lower price-to-earnings ratio than Cass Information Systems, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Cass Information Systems has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Grab has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Profitability

This table compares Cass Information Systems and Grab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cass Information Systems	15.21%	13.67%	1.23%
Grab	-11.86%	-4.62%	-3.48%

Analyst Recommendations

This is a summary of current ratings and price targets for Cass Information Systems and Grab, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cass Information Systems	0	0	1	0	3.00
Grab	0	0	8	0	3.00

Cass Information Systems currently has a consensus price target of $51.00, indicating a potential upside of 25.46%. Grab has a consensus price target of $5.06, indicating a potential upside of 43.01%. Given Grab’s higher possible upside, analysts clearly believe Grab is more favorable than Cass Information Systems.

Summary

Cass Information Systems beats Grab on 7 of the 13 factors compared between the two stocks.

About Cass Information Systems

Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. The company operates through two segments, Information Services and Banking Services. Its services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. The company also processes and pays facility-related invoices, such as electricity, gas, waste, and telecommunications expenses; and provides telecom expense management solutions, as well as church management software solution and on-line platform to provide generosity services for faith-based and non-profit organizations. In addition, the company, through its banking subsidiary, Cass Commercial Bank, provides a range of banking products and services, such as demand, savings, time, and money market deposits; commercial, industrial, commercial real estate, and construction and land development loans; and cash management services to privately held businesses, restaurant franchises, and faith-related ministries. Further, it provides B2B payment platform for clients that require an agile fintech partner. It operates through its banking facility near downtown St. Louis, Missouri; operating branch in the Bridgeton, Missouri; and leased facilities in Colorado Springs, Colorado. The company was formerly known as Cass Commercial Corporation and changed its name to Cass Information Systems, Inc. in January 2001. Cass Information Systems, Inc. was founded in 1906 and is headquartered in Saint Louis, Missouri.

About Grab

Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.