Head to Head Comparison: GDS (NASDAQ:GDS) vs. Bumble (NASDAQ:BMBL)

Bumble (NASDAQ:BMBL) and GDS (NASDAQ:GDS) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

94.8% of Bumble shares are owned by institutional investors. Comparatively, 33.7% of GDS shares are owned by institutional investors. 7.8% of Bumble shares are owned by insiders. Comparatively, 8.0% of GDS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Bumble and GDS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bumble	$1.07 billion	0.42	-$4.21 million	($4.89)	-0.88
GDS	$10.32 billion	0.39	-$606.18 million	$2.51	8.45

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bumble	-54.19%	3.31%	2.06%
GDS	-35.97%	-8.22%	-1.99%

Analyst Ratings

This is a breakdown of recent recommendations for Bumble and GDS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bumble	1	15	2	0	2.06
GDS	0	1	5	3	3.22

Bumble currently has a consensus price target of $7.09, suggesting a potential upside of 64.81%. GDS has a consensus price target of $39.48, suggesting a potential upside of 86.14%. Given GDS’s stronger consensus rating and higher possible upside, analysts clearly believe GDS is more favorable than Bumble.

Volatility & Risk

Bumble has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500. Comparatively, GDS has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Summary

GDS beats Bumble on 8 of the 15 factors compared between the two stocks.

About Bumble

Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point. Bumble Inc. was founded in 2006 in and is headquartered in Austin, Texas.

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.