Financial Comparison: Bumble (NASDAQ:BMBL) vs. GDS (NASDAQ:GDS)

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

Analyst Recommendations

This is a breakdown of recent ratings for Bumble and GDS, as provided 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 presently has a consensus target price of $7.09, indicating a potential upside of 62.54%. GDS has a consensus target price of $39.48, indicating a potential upside of 83.88%. Given GDS’s stronger consensus rating and higher possible upside, analysts plainly believe GDS is more favorable than Bumble.

Volatility and Risk

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

Earnings and 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	0.43	-$4.21 million	($4.89)	-0.89
GDS	$10.32 billion	0.40	-$606.18 million	$2.51	8.55

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%

Insider & Institutional Ownership

94.8% of Bumble shares are held by institutional investors. Comparatively, 33.7% of GDS shares are held by institutional investors. 7.8% of Bumble shares are held by company insiders. Comparatively, 8.0% of GDS shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

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.