Head-To-Head Survey: Versus Systems (NASDAQ:VS) and Gravity (NASDAQ:GRVY)

Gravity (NASDAQ:GRVY) and Versus Systems (NASDAQ:VS) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Profitability

This table compares Gravity and Versus Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gravity	16.96%	46.65%	36.71%
Versus Systems	-7,480.35%	-204.20%	-165.00%

Institutional & Insider Ownership

9.9% of Gravity shares are held by institutional investors. Comparatively, 60.7% of Versus Systems shares are held by institutional investors. 20.1% of Versus Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Gravity has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Versus Systems has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Gravity and Versus Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gravity	0	0	0	0	N/A
Versus Systems	0	1	0	0	2.00

Versus Systems has a consensus price target of $2.00, suggesting a potential upside of 35.14%. Given Versus Systems’ higher possible upside, analysts plainly believe Versus Systems is more favorable than Gravity.

Valuation and Earnings

This table compares Gravity and Versus Systems’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gravity	$555.74 million	0.94	$105.61 million	$13.23	5.70
Versus Systems	$270,000.00	13.76	-$10.51 million	N/A	N/A

Gravity has higher revenue and earnings than Versus Systems.

About Gravity

Gravity Co., Ltd. develops and publishes online and mobile games in South Korea, Taiwan, Thailand, and the United States. The company offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Prequel II. Its mobile games portfolio includes Ragnarok M: Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; and Paladog Tactics. The company 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; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Haunted House and Pororo: The Little Penguin; and markets dolls, stationery, food, and other character-based merchandises, as well as game manuals, monthly magazines, and other publications. 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.

About Versus Systems

Versus Systems Inc. develops and operates a business-to-business software platform in the United States and Canada. The company offers eXtreme Engagement Online platform that is designed primarily for in-venue main-board work in stadiums and arenas; Filter Fan Cam (FFC) platform, an augmented reality filtering tool that can be used for mobile and in-venue applications; and Winfinite, which allows brands, media companies, and advertising agencies to reach out to customers directly on their mobile devices. It also offers business-to-business software platform that allows video game publishers, developers, and other interactive media content creators in-game prizing and rewards based on the completion of in-content challenges. In addition, the company provides XEO technology platform that offers online audience engagement. It primarily sells its access to platform and service offerings through its direct sales organization. Versus Systems Inc. is headquartered in Vancouver, Canada.