GDS (NYSE: WUBA) and 58.com (NYSE:WUBA) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Valuation & Earnings
This table compares GDS and 58.com’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GDS||$248.40 million||17.38||-$48.38 million||($0.51)||-72.08|
|58.com||$1.54 billion||7.18||$211.89 million||$1.33||56.79|
58.com has higher revenue and earnings than GDS. GDS is trading at a lower price-to-earnings ratio than 58.com, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
GDS has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, 58.com has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for GDS and 58.com, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
GDS currently has a consensus price target of $40.82, indicating a potential upside of 11.04%. 58.com has a consensus price target of $92.00, indicating a potential upside of 21.81%. Given 58.com’s higher possible upside, analysts clearly believe 58.com is more favorable than GDS.
This table compares GDS and 58.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
39.3% of GDS shares are owned by institutional investors. Comparatively, 59.0% of 58.com shares are owned by institutional investors. 11.9% of 58.com shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
58.com beats GDS on 11 of the 15 factors compared between the two stocks.
GDS Company Profile
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.
58.com Company Profile
58.com Inc. operates online classifieds and listing platforms that enable local businesses and consumers to connect, share information, and conduct business in the People's Republic of China. It operates multi-content category online classified platforms primarily under the 58 and Ganji names; and Anjuke, an online real estate listing platform. The company's platform provides various content categories, including jobs, real estate, used goods, automotive, yellow pages, and other local services categories. It offers membership services, such as merchant certification and listing benefits, as well as display of online storefronts; and online marketing services comprising real-time bidding, priority listing, various other lead-generation services, and display advertising. The company was founded in 2005 and is headquartered in Beijing, the People's Republic of China.
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