CA (CA) and Gds Holdings (GDS) Critical Survey

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

Valuation & Earnings

This table compares CA and Gds Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
CA $4.04 billion 3.37 $775.00 million $1.73 18.76
Gds Holdings $152.09 million 12.97 -$41.60 million ($0.56) -36.16

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

Dividends

CA pays an annual dividend of $1.02 per share and has a dividend yield of 3.1%. Gds Holdings does not pay a dividend. CA pays out 59.0% of its earnings in the form of a dividend.

Insider & Institutional Ownership

68.1% of CA shares are held by institutional investors. Comparatively, 16.0% of Gds Holdings shares are held by institutional investors. 0.9% of CA shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares CA and Gds Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CA 17.83% 15.74% 7.50%
Gds Holdings -19.71% -9.54% -3.04%

Analyst Recommendations

This is a summary of recent ratings and price targets for CA and Gds Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CA 3 9 5 0 2.12
Gds Holdings 0 0 1 0 3.00

CA presently has a consensus price target of $33.34, suggesting a potential upside of 2.74%. Gds Holdings has a consensus price target of $14.00, suggesting a potential downside of 30.86%. Given CA’s higher possible upside, equities research analysts clearly believe CA is more favorable than Gds Holdings.

Summary

CA beats Gds Holdings on 11 of the 14 factors compared between the two stocks.

CA Company Profile

CA, Inc. (CA) is engaged in providing software solutions enabling customers to plan, develop, manage and secure applications and enterprise environments across distributed, cloud, mobile and mainframe platforms. The Company operates through three business segments: Mainframe Solutions, Enterprise Solutions and Services. Its Mainframe Solutions and Enterprise Solutions segments comprise the Company’s software business organized by the nature of its software offerings and the platform on which the products operate. The Services segment comprises product implementation, consulting, customer education, customer training and application management services. CA’s Mainframe Solutions segment consists of various product offerings, including Application Development, Databases and Database Management, Security & Compliance, and Systems and Operations Management. The Enterprise Solutions segment consists of various product offerings, including Agile Management, DevOps and Security.

Gds Holdings 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.

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