Financial Contrast: GDS (NASDAQ:GDS) versus Intchains Group (NASDAQ:ICG)

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

Institutional & Insider Ownership

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

Profitability

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

Net Margins Return on Equity Return on Assets
Intchains Group -24.68% -5.29% -5.08%
GDS 23.83% 15.62% 5.16%

Volatility and Risk

Intchains Group has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, GDS has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Intchains Group and GDS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intchains Group 1 1 1 0 2.00
GDS 0 1 5 2 3.12

Intchains Group presently has a consensus target price of $3.00, suggesting a potential upside of 266.30%. GDS has a consensus target price of $48.33, suggesting a potential upside of 55.10%. Given Intchains Group’s higher probable upside, analysts clearly believe Intchains Group is more favorable than GDS.

Earnings and Valuation

This table compares Intchains Group and GDS”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intchains Group $31.58 million 1.57 -$6.80 million ($0.12) -6.83
GDS $1.63 billion 3.82 $132.10 million $1.57 19.85

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

Summary

GDS beats Intchains Group on 13 of the 15 factors compared between the two stocks.

About Intchains Group

(Get Free Report)

Intchains Group Limited designs and sells application-specific integrated circuit chips for blockchain applications in the People's Republic of China. The company also offers ancillary software, hardware, and other products. It serves distributors. Intchains Group Limited was founded in 2017 and is based in Pudong, China.

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.

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