Head-To-Head Contrast: 21Vianet Group (VNET) versus FunctionX (FNCX)

21Vianet Group (NASDAQ: VNET) and FunctionX (OTCMKTS:FNCX) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Insider and Institutional Ownership

28.3% of 21Vianet Group shares are owned by institutional investors. 60.5% of FunctionX shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for 21Vianet Group and FunctionX, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
21Vianet Group 0 0 1 0 3.00
FunctionX 0 0 0 0 N/A

21Vianet Group currently has a consensus target price of $9.50, suggesting a potential upside of 5.67%. Given 21Vianet Group’s higher possible upside, equities analysts plainly believe 21Vianet Group is more favorable than FunctionX.

Valuation & Earnings

This table compares 21Vianet Group and FunctionX’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
21Vianet Group $521.45 million 1.93 -$118.76 million ($0.24) -37.46
FunctionX $4.51 million 2.60 -$61.86 million N/A N/A

FunctionX has lower revenue, but higher earnings than 21Vianet Group.

Volatility and Risk

21Vianet Group has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, FunctionX has a beta of -0.23, suggesting that its share price is 123% less volatile than the S&P 500.

Profitability

This table compares 21Vianet Group and FunctionX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
21Vianet Group -18.29% 0.85% 0.40%
FunctionX N/A N/A N/A

Summary

21Vianet Group beats FunctionX on 7 of the 11 factors compared between the two stocks.

21Vianet Group Company Profile

21Vianet Group, Inc. provides carrier-neutral Internet data center services to Internet companies, government entities, blue-chip enterprises, and small-to mid-sized enterprises in the People's Republic of China. It offers hosting and related services to house servers and networking equipment in its data centers, and connects them through a data transmission network; and other hosting related value-added services. Its hosting and related services include managed hosting services that offer data center space to house its customers' servers and networking equipment, and provide tailored server administration services; and interconnectivity services that enable customers to connect their servers with Internet backbones and other networks through its border gateway protocol network or single-line, dual-line, or multiple-line network. Its hosting and related services also comprise content delivery network services that optimize the speed and security of data transmission; cloud services that enable businesses to run their applications over the Internet using its IT infrastructure; virtual private network services; and other value-added services, such as firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services. In addition, the company provides traffic charts and analysis, gateway monitoring for servers, domain name system setup, defense mechanism against distributed denial of service attacks, basic setting of switches and routers, and virus protections; and managed network services consisting of hosting area network, and route optimization services. As of December 31, 2017, it operated 19 self-built and 38 partnered data centers located in approximately 20 cities with 29,080 cabinets. It has a strategic partnership with Microsoft Corporation. 21Vianet Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

FunctionX Company Profile

Function(x) Inc. operates Wetpaint.com, an online destination for entertainment news for millennial women covering the latest in television, music, and pop culture. The company also offers daily fantasy sports experience both directly to consumers and to businesses desiring turnkey solutions. In addition, it operates Rant, a digital publisher that publishes original content in 13 different verticals, primarily sports, entertainment, pets, cars, and food; and Choose Digital, a digital marketplace platform that allows companies to incorporate digital content into existing rewards and loyalty programs in support of marketing and sales initiatives. The company was formerly known as DraftDay Fantasy Sports, Inc. and changed its name to Function(x) Inc. in June 2016. Function(x) Inc. is headquartered in New York, New York.

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