Contrasting GDS (NASDAQ:GDS) & Mogo (NASDAQ:MOGO)

Mogo (NASDAQ:MOGO) and GDS (NASDAQ:GDS) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares Mogo and GDS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mogo	11.41%	7.78%	3.34%
GDS	30.70%	17.94%	6.11%

Insider and Institutional Ownership

14.8% of Mogo shares are owned by institutional investors. Comparatively, 33.7% of GDS shares are owned by institutional investors. 12.3% of Mogo shares are owned by company insiders. Comparatively, 8.0% of GDS shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Mogo and GDS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mogo	$69.27 million	0.34	-$9.98 million	$0.23	4.26
GDS	$1.63 billion	3.83	$132.10 million	$2.15	14.53

GDS has higher revenue and earnings than Mogo. Mogo is trading at a lower price-to-earnings ratio than GDS, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Mogo has a beta of 2.71, meaning that its share price is 171% more volatile than the S&P 500. Comparatively, GDS has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Mogo and GDS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mogo	1	1	0	0	1.50
GDS	0	2	3	1	2.83

GDS has a consensus price target of $48.12, suggesting a potential upside of 54.07%. Given GDS’s stronger consensus rating and higher probable upside, analysts plainly believe GDS is more favorable than Mogo.

Summary

GDS beats Mogo on 13 of the 15 factors compared between the two stocks.

About Mogo

Mogo Inc. operates as a digital finance company in Canada, Europe, and internationally. The company's digital solutions help build wealth and achieve financial freedom. It provides MogoTrade, a stock trading app; Moka; and MogoMoney that provides online personal loans. The company also offers digital loans and mortgages; and operates a digital payments platform that powers next-generation card programs for both global corporations and fintech companies in Europe and Canada. Mogo Inc. is headquartered in Vancouver, Canada.

About GDS

GDS Holdings Limited, together with its subsidiaries, develops and operates data centers in the People's Republic of China. The company provides colocation services comprising critical facilities space, customer-available power, racks, and cooling; managed hosting services, including business continuity and disaster recovery, network management, data storage, system security, operating system, database, and server middleware services; managed cloud services; and consulting services. It serves cloud service providers, large Internet companies, financial institutions, telecommunications and IT service providers, and large domestic private sector and multinational corporations. GDS Holdings Limited was founded in 2001 and is headquartered in Shanghai, the People's Republic of China.