Financial Analysis: Cardlytics (CDLX) vs. GDS (GDS)

Cardlytics (NASDAQ: CDLX) and GDS (NASDAQ:GDS) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Valuation and Earnings

This table compares Cardlytics and GDS’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardlytics $130.37 million 3.80 -$19.64 million ($8.02) -3.05
GDS $248.40 million 16.87 -$48.38 million ($0.51) -84.35

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

Profitability

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

Net Margins Return on Equity Return on Assets
Cardlytics N/A N/A N/A
GDS -20.08% -9.34% -3.07%

Insider and Institutional Ownership

48.3% of Cardlytics shares are held by institutional investors. Comparatively, 37.1% of GDS shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Cardlytics and GDS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardlytics 0 1 5 0 2.83
GDS 0 1 3 0 2.75

Cardlytics presently has a consensus target price of $22.40, suggesting a potential downside of 8.35%. GDS has a consensus target price of $37.28, suggesting a potential downside of 13.35%. Given Cardlytics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Cardlytics is more favorable than GDS.

Summary

Cardlytics beats GDS on 9 of the 12 factors compared between the two stocks.

Cardlytics Company Profile

Cardlytics, Inc. operates a purchase intelligence platform in the United States and the United Kingdom. It operates in two segments, Cardlytics Direct and Other Platform Solutions. The company's platform is the Cardlytics Direct solution, a proprietary native bank advertising channel that enables marketers to reach consumers through their trusted and frequently visited online and mobile banking channels. It also provides solutions that enable marketers and marketing service providers to leverage the power of purchase intelligence outside the banking channel. The company was founded in 2008 and is headquartered in Atlanta, Georgia.

GDS Company Profile

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


Leave a Reply