GDS (NASDAQ:GDS – Get Free Report) and Bumble (NASDAQ:BMBL – Get Free Report) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Valuation & Earnings
This table compares GDS and Bumble”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GDS | $10.32 billion | 0.38 | -$606.18 million | $2.51 | 8.22 |
| Bumble | $1.07 billion | 0.39 | -$4.21 million | ($4.89) | -0.82 |
Bumble has lower revenue, but higher earnings than GDS. Bumble is trading at a lower price-to-earnings ratio than GDS, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GDS | 0 | 1 | 5 | 3 | 3.22 |
| Bumble | 1 | 15 | 2 | 0 | 2.06 |
GDS presently has a consensus price target of $39.48, indicating a potential upside of 91.37%. Bumble has a consensus price target of $7.12, indicating a potential upside of 78.00%. Given GDS’s stronger consensus rating and higher probable upside, analysts clearly believe GDS is more favorable than Bumble.
Profitability
This table compares GDS and Bumble’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GDS | -35.97% | -8.22% | -1.99% |
| Bumble | -54.19% | 3.31% | 2.06% |
Institutional and Insider Ownership
33.7% of GDS shares are held by institutional investors. Comparatively, 94.8% of Bumble shares are held by institutional investors. 8.0% of GDS shares are held by insiders. Comparatively, 7.8% of Bumble shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
GDS has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, Bumble has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.
Summary
GDS beats Bumble on 8 of the 15 factors compared between the two stocks.
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.
About Bumble
Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point. Bumble Inc. was founded in 2006 in and is headquartered in Austin, Texas.
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