Real Brokerage (NASDAQ:REAX – Get Free Report) and GDS (NASDAQ:GDS – Get Free Report) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.
Risk and Volatility
Real Brokerage has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, GDS has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
Valuation & Earnings
This table compares Real Brokerage and GDS”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Real Brokerage | $1.97 billion | 0.19 | -$8.10 million | ($0.03) | -59.33 |
| GDS | $1.63 billion | 4.16 | $132.10 million | $1.57 | 22.31 |
GDS has lower revenue, but higher earnings than Real Brokerage. Real Brokerage is trading at a lower price-to-earnings ratio than GDS, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Real Brokerage and GDS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Real Brokerage | -0.32% | -11.37% | -4.32% |
| GDS | 23.83% | 15.62% | 5.16% |
Institutional and Insider Ownership
53.3% of Real Brokerage shares are owned by institutional investors. Comparatively, 33.7% of GDS shares are owned by institutional investors. 38.2% of Real Brokerage shares are owned by insiders. Comparatively, 8.0% of GDS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Real Brokerage and GDS, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Real Brokerage | 1 | 1 | 4 | 2 | 2.88 |
| GDS | 0 | 3 | 7 | 1 | 2.82 |
Real Brokerage presently has a consensus price target of $5.69, indicating a potential upside of 219.52%. GDS has a consensus price target of $48.04, indicating a potential upside of 37.17%. Given Real Brokerage’s stronger consensus rating and higher possible upside, research analysts clearly believe Real Brokerage is more favorable than GDS.
Summary
GDS beats Real Brokerage on 8 of the 15 factors compared between the two stocks.
About Real Brokerage
The Real Brokerage Inc., together with its subsidiaries, operates as a real estate technology company in the United States and Canada. It operates in three segments: North American Brokerage, Real Title, and One Real Mortgage. It offers brokerage, title, and mortgage broker services. The company is based in Miami, Florida.
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.
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