GDS (NASDAQ:GDS) and Snap (NYSE:SNAP) are both business services 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.
Risk & Volatility
GDS has a beta of 3.25, meaning that its share price is 225% more volatile than the S&P 500. Comparatively, Snap has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.
Insider and Institutional Ownership
46.7% of GDS shares are owned by institutional investors. Comparatively, 23.3% of Snap shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares GDS and Snap’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares GDS and Snap’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GDS||$248.40 million||16.96||-$48.38 million||($0.51)||-70.35|
|Snap||$1.18 billion||12.49||-$1.26 billion||($0.97)||-11.51|
GDS has higher earnings, but lower revenue than Snap. GDS is trading at a lower price-to-earnings ratio than Snap, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for GDS and Snap, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
GDS presently has a consensus price target of $41.14, suggesting a potential upside of 14.67%. Snap has a consensus price target of $8.81, suggesting a potential downside of 21.10%. Given GDS’s stronger consensus rating and higher probable upside, equities research analysts plainly believe GDS is more favorable than Snap.
GDS beats Snap on 12 of the 14 factors compared between the two stocks.
GDS Holdings Limited, together with its subsidiaries, designs, builds, and operates data centers in the People's Republic of China. The company provides colocation, managed hosting, and managed cloud services. Its data centers service customers that primarily operate in the Internet and banking industries in Shanghai, Beijing, Shenzhen, Guangzhou, and Chengdu. The company serves Internet companies, financial institutions, telecommunications and IT service providers, and large domestic private sector and multinational corporations. GDS Holdings Limited was incorporated in 2006 and is headquartered in Shanghai, the People's Republic of China.
Snap Inc. operates as a camera company in the United States and internationally. The company offers Snapchat, a camera application that helps people to communicate through short videos and images. It also provides Camera, a tool to personalize and add context to Snaps; Friends Page that allows creating and watching stories, chatting with groups, making voice and video calls, and communicating through a range of contextual stickers and Bitmojis; and Discover that helps surfacing the stories and shows from publishers, creators, and the community, based on a user's subscriptions and interests. In addition, the company offers Snap Map, which brings to a live map of individual location, showing nearby friends, popular stories, and a heatmap of recent snaps posted; Memories that allows users to choose to save the Snaps they create in a searchable personal collection, and users to create Snaps and stories from their saved Snaps and camera roll; and Spectacles, a hardware product that connects with Snapchat and captures video from a human perspective. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.
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