GrubHub (GRUB) vs. Mitek Systems (MITK) Financial Analysis

Mitek Systems (NASDAQ: MITK) and GrubHub (NASDAQ:GRUB) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Earnings and Valuation

This table compares Mitek Systems and GrubHub’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mitek Systems $42.16 million 7.63 $5.39 million $0.06 160.03
GrubHub $575.85 million 8.15 $125.16 million N/A N/A

GrubHub has higher revenue and earnings than Mitek Systems.

Institutional & Insider Ownership

39.0% of Mitek Systems shares are held by institutional investors. 8.5% of Mitek Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Mitek Systems and GrubHub’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mitek Systems 5.19% 10.45% 8.65%
GrubHub 11.35% 7.21% 5.83%

Analyst Ratings

This is a summary of current ratings and price targets for Mitek Systems and GrubHub, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitek Systems 0 0 5 0 3.00
GrubHub 1 7 13 0 2.57

Mitek Systems currently has a consensus target price of $10.60, suggesting a potential upside of 10.42%. GrubHub has a consensus target price of $48.15, suggesting a potential downside of 11.59%. Given Mitek Systems’ stronger consensus rating and higher possible upside, equities analysts plainly believe Mitek Systems is more favorable than GrubHub.

Summary

Mitek Systems beats GrubHub on 7 of the 12 factors compared between the two stocks.

About Mitek Systems

Mitek Systems, Inc. develops, markets and sells mobile capture and identity verification software solutions for enterprise customers. The Company’s technology allows users to remotely deposit checks, open accounts, get insurance quotes, pay bills, as well as verify their identity by taking pictures of various documents with their camera-equipped smartphones and tablets instead of using the device keyboard. Its technology uses algorithms to correct image distortion, extract relevant data, route images to their desired location and process transactions. Its technology processes images of documents in various ways. The Company’s products include Mobile Verify, Mobile Fill, Mobile Docs, Mobile Deposit and Commercial Mobile Deposit Capture. Its mobile technology solutions are provided in two parts: a software development kit (SDK) for mobile capture, and a software platform for image correction, detection, extraction and authentication.

About GrubHub

Grubhub Inc. provides an online and mobile platform for restaurant pick-up and delivery orders. Its products include Grubhub and Seamless Mobile Applications and Mobile Website, Grubhub and Seamless Websites, Corporate Program, Delivery, Allmenus and MenuPages, Grubhub for Restaurants, and Restaurant Websites. As of December 31, 2016, the Company connected more than 50,000 local restaurants with diners in more than 1,100 cities across the United States. In certain markets, the Company also provides delivery services to restaurants on its platform that do not have their own delivery operations. The Company provides diners on the platform with a personalized platform that helps them search for local restaurants and then place an order from an Internet-connected device. It also provides diners with information about their orders and status. The Company also provides delivery services to restaurants on its platform that do not have their own delivery operations.

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