BlackRock (NYSE:BLK – Get Free Report) and Chindata Group (NASDAQ:CD – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Risk and Volatility
BlackRock has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Chindata Group has a beta of 5.06, suggesting that its share price is 406% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for BlackRock and Chindata Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BlackRock | 0 | 3 | 14 | 1 | 2.89 |
| Chindata Group | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares BlackRock and Chindata Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BlackRock | 24.09% | 14.90% | 4.97% |
| Chindata Group | N/A | N/A | N/A |
Institutional and Insider Ownership
80.7% of BlackRock shares are owned by institutional investors. Comparatively, 30.8% of Chindata Group shares are owned by institutional investors. 1.9% of BlackRock shares are owned by company insiders. Comparatively, 5.5% of Chindata Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares BlackRock and Chindata Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BlackRock | $24.22 billion | 6.82 | $5.55 billion | $41.84 | 25.47 |
| Chindata Group | $1.87 million | 702.94 | -$5.10 million | ($0.03) | -398.33 |
BlackRock has higher revenue and earnings than Chindata Group. Chindata Group is trading at a lower price-to-earnings ratio than BlackRock, indicating that it is currently the more affordable of the two stocks.
Summary
BlackRock beats Chindata Group on 12 of the 15 factors compared between the two stocks.
About BlackRock
BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California.
About Chindata Group
Chindata Group Holdings Limited provides carrier-neutral hyperscale data center solutions in Mainland China, India, and Southeast Asia. It offers artificial intelligence, cloud computing, smart cities and homes, online entertainment, and other on-demand services. The company also provides internet data center colocation and rental services; and technical and consulting services. Its integrated data center solutions include infrastructure, power supply, connectivity and operation and maintenance, and tailor-made to their scale and requirements throughout the planning, design, construction, and operation process. The company was formerly known as BCPE Bridge Stack Limited and changed its name to Chindata Group Holdings Limited in April 2020. Chindata Group Holdings Limited was founded in 2015 and is headquartered in Beijing, China.
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