Contrasting Duos Technologies Group (NASDAQ:DUOT) and GDS (NASDAQ:GDS)

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

Profitability

This table compares Duos Technologies Group and GDS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duos Technologies Group	-52.79%	-65.17%	-23.64%
GDS	49.60%	5.17%	1.63%

Valuation & Earnings

This table compares Duos Technologies Group and GDS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duos Technologies Group	$7.28 million	21.14	-$10.76 million	($0.95)	-7.76
GDS	$1.41 billion	N/A	$476.47 million	$3.99	10.73

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

Volatility & Risk

Duos Technologies Group has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, GDS has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Duos Technologies Group and GDS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duos Technologies Group	1	0	1	0	2.00
GDS	0	3	8	1	2.83

Duos Technologies Group currently has a consensus price target of $14.00, suggesting a potential upside of 89.96%. GDS has a consensus price target of $47.91, suggesting a potential upside of 11.89%. Given Duos Technologies Group’s higher probable upside, analysts plainly believe Duos Technologies Group is more favorable than GDS.

Institutional & Insider Ownership

42.6% of Duos Technologies Group shares are held by institutional investors. Comparatively, 33.7% of GDS shares are held by institutional investors. 11.6% of Duos Technologies Group shares are held by company insiders. Comparatively, 8.0% of GDS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

GDS beats Duos Technologies Group on 10 of the 14 factors compared between the two stocks.

About Duos Technologies Group

Duos Technologies Group, Inc. designs, develops, deploys, and operates intelligent technology solutions in North America. The company provides solutions, such as Centraco, an enterprise information management software platform that consolidates data and events from multiple sources into a unified and distributive user interface; and truevue360, an integrated platform to develop and deploy artificial intelligence algorithms, including machine learning, computer vision, object detection, and deep neural network-based processing for real-time applications. Its proprietary applications include Railcar Inspection Portal that provides freight and transit railroad customers and select government agencies the ability to conduct fully automated railcar inspections of trains while they are moving at full speed. It also develops Automated Logistics Information System, which automates gatehouse operations, as well as develops solutions for rail, trucking, aviation, and other vehicle-based processes. In addition, the company provides consulting services, including consulting and auditing; software licensing with optional hardware sales; customer service training; and maintenance support. The company operates its services under the duostech brand. The company is headquartered in Jacksonville, Florida.

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.