GDS (NASDAQ:GDS – Get Free Report) and Mogo (NASDAQ:MOGO – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.
Insider & Institutional Ownership
33.7% of GDS shares are held by institutional investors. Comparatively, 14.8% of Mogo shares are held by institutional investors. 8.0% of GDS shares are held by insiders. Comparatively, 12.3% of Mogo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
GDS has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Mogo has a beta of 2.71, meaning that its share price is 171% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GDS | $12.26 billion | 0.45 | $132.10 million | $2.15 | 12.82 |
| Mogo | $69.27 million | 0.38 | -$9.98 million | $0.23 | 4.78 |
GDS has higher revenue and earnings than Mogo. Mogo is trading at a lower price-to-earnings ratio than GDS, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for GDS and Mogo, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GDS | 0 | 2 | 3 | 1 | 2.83 |
| Mogo | 1 | 1 | 0 | 0 | 1.50 |
GDS presently has a consensus target price of $48.12, indicating a potential upside of 74.53%. Given GDS’s stronger consensus rating and higher possible upside, research analysts clearly believe GDS is more favorable than Mogo.
Profitability
This table compares GDS and Mogo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GDS | 30.70% | 17.94% | 6.11% |
| Mogo | 11.41% | 7.78% | 3.34% |
Summary
GDS beats Mogo on 13 of the 15 factors compared between the two stocks.
About GDS
GDS Holdings Limited, together with its subsidiaries, develops and operates data centers in the People's Republic of China. The company provides colocation services comprising critical facilities space, customer-available power, racks, and cooling; managed hosting services, including business continuity and disaster recovery, network management, data storage, system security, operating system, database, and server middleware services; managed cloud services; and consulting services. It serves cloud service providers, large Internet companies, financial institutions, telecommunications and IT service providers, and large domestic private sector and multinational corporations. GDS Holdings Limited was founded in 2001 and is headquartered in Shanghai, the People's Republic of China.
About Mogo
Mogo Inc. operates as a digital finance company in Canada, Europe, and internationally. The company's digital solutions help build wealth and achieve financial freedom. It provides MogoTrade, a stock trading app; Moka; and MogoMoney that provides online personal loans. The company also offers digital loans and mortgages; and operates a digital payments platform that powers next-generation card programs for both global corporations and fintech companies in Europe and Canada. Mogo Inc. is headquartered in Vancouver, Canada.
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