GDS (NASDAQ:GDS) vs. AdTheorent (NASDAQ:ADTH) Financial Review

GDS (NASDAQ:GDSGet Free Report) and AdTheorent (NASDAQ:ADTHGet Free Report) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

33.7% of GDS shares are owned by institutional investors. Comparatively, 37.7% of AdTheorent shares are owned by institutional investors. 8.0% of GDS shares are owned by insiders. Comparatively, 7.1% of AdTheorent shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
GDS -41.33% -8.70% -2.35%
AdTheorent -2.67% 0.77% 0.64%

Analyst Ratings

This is a summary of current recommendations and price targets for GDS and AdTheorent, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GDS 0 1 2 0 2.67
AdTheorent 0 3 1 0 2.25

GDS currently has a consensus target price of $12.92, suggesting a potential upside of 6.05%. AdTheorent has a consensus target price of $4.69, suggesting a potential upside of 46.48%. Given AdTheorent’s higher possible upside, analysts clearly believe AdTheorent is more favorable than GDS.

Risk and Volatility

GDS has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, AdTheorent has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Earnings & Valuation

This table compares GDS and AdTheorent’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GDS $1.40 billion 1.66 -$606.18 million ($3.21) -3.79
AdTheorent $170.81 million 1.72 $10,000.00 ($0.06) -53.32

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

Summary

AdTheorent beats GDS on 9 of the 14 factors compared between the two stocks.

About GDS

(Get Free Report)

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 AdTheorent

(Get Free Report)

AdTheorent Holding Company, Inc., a digital media platform, provides programmatic digital advertising services for advertising agency and brand customers in the United States, Canada, and internationally. It uses machine learning and advanced data science to organize, analyze, and operationalize non-sensitive data to deliver real-world value for customers. The company offers predictive targeting solutions across various customer industry verticals and consumer screens, including customized targeting, measurement, and analytical services; and location-based targeting and geo-intelligence solutions. AdTheorent Holding Company, Inc. was founded in 2012 and is headquartered in New York, New York.

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