Reviewing Weibo (WB) & GDS (GDS)

Weibo (NASDAQ: WB) and GDS (NASDAQ:GDS) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

How to Become a New Pot Stock Millionaire

This is a summary of current recommendations and price targets for Weibo and GDS, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weibo 0 0 9 0 3.00
GDS 1 0 2 0 2.33

Weibo currently has a consensus target price of $127.89, suggesting a potential upside of 7.67%. GDS has a consensus target price of $29.03, suggesting a potential upside of 7.41%. Given Weibo’s stronger consensus rating and higher possible upside, analysts plainly believe Weibo is more favorable than GDS.

Earnings & Valuation

This table compares Weibo and GDS’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weibo $1.15 billion 22.85 $352.59 million $1.56 76.14
GDS $248.40 million 10.60 -$48.38 million ($0.51) -53.00

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

Risk & Volatility

Weibo has a beta of 2.6, suggesting that its stock price is 160% more volatile than the S&P 500. Comparatively, GDS has a beta of 2.56, suggesting that its stock price is 156% more volatile than the S&P 500.

Institutional and Insider Ownership

22.4% of Weibo shares are owned by institutional investors. Comparatively, 20.9% of GDS shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Weibo 30.66% 35.57% 21.46%
GDS -20.29% -10.11% -3.20%

Summary

Weibo beats GDS on 12 of the 12 factors compared between the two stocks.

About Weibo

Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. It operates in two segments: advertising and marketing services and other services. It offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform, and notifications to notify users on Weibo account activities through short message service (SMS) or push notification on their device. It offers advertising and marketing solutions to enable its customers to promote their brands and conduct marketing activities. It offers its platform partners with tools and application programming interfaces (APIs).

About GDS

GDS Holdings Ltd is a developer and operator of data centers in China. The Company is engaged in design, build-out and operation of data centers. It operates as a carrier and cloud neutral, which enables its customers to connect to all the People’s Republic of China telecommunications carriers, and to access a number of the People’s Republic of China cloud service providers, whom it hosts in its facilities. The Company’s base of approximately 370 customers consists of Internet companies, financial institutions, telecommunications and information technology (IT) service providers, and domestic private sector and multinational corporations. It serves a community of approximately 160 People’s Republic of China and foreign financial institutions across the banking, insurance, asset management, brokerage, digital payment and financial information verticals. The Company operates its data centers in Shanghai, Beijing, Shenzhen, Guangzhou and Chengdu.

Receive News & Ratings for Weibo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Weibo and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply