Grab (NASDAQ:GRAB – Get Free Report) and Cass Information Systems (NASDAQ:CASS – Get Free Report) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.
Institutional and Insider Ownership
55.5% of Grab shares are held by institutional investors. Comparatively, 59.1% of Cass Information Systems shares are held by institutional investors. 3.6% of Grab shares are held by insiders. Comparatively, 2.8% of Cass Information 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.
Profitability
This table compares Grab and Cass Information Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grab | -11.86% | -4.62% | -3.48% |
| Cass Information Systems | 15.21% | 13.67% | 1.23% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grab | 0 | 0 | 8 | 0 | 3.00 |
| Cass Information Systems | 0 | 0 | 1 | 0 | 3.00 |
Grab presently has a consensus target price of $5.06, indicating a potential upside of 44.64%. Cass Information Systems has a consensus target price of $51.00, indicating a potential upside of 23.58%. Given Grab’s higher possible upside, equities research analysts clearly believe Grab is more favorable than Cass Information Systems.
Volatility & Risk
Grab has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Cass Information Systems has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
Earnings & Valuation
This table compares Grab and Cass Information Systems’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grab | $2.36 billion | 5.82 | -$434.00 million | ($0.07) | -49.99 |
| Cass Information Systems | $197.51 million | 2.85 | $30.06 million | $2.19 | 18.84 |
Cass Information Systems has lower revenue, but higher earnings 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.
Summary
Cass Information Systems beats Grab on 7 of the 13 factors compared between the two stocks.
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.
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.
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