Analyzing Rumble (NASDAQ:RUM) and GDS (NASDAQ:GDS)

GDS (NASDAQ:GDS) and Rumble (NASDAQ:RUM) are both mid-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for GDS and Rumble, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GDS	0	1	2	0	2.67
Rumble	0	1	0	0	2.00

GDS presently has a consensus target price of $12.92, suggesting a potential upside of 12.03%. Given GDS’s stronger consensus rating and higher probable upside, equities research analysts clearly believe GDS is more favorable than Rumble.

Volatility and Risk

GDS has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Rumble has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Insider and Institutional Ownership

33.7% of GDS shares are held by institutional investors. Comparatively, 26.2% of Rumble shares are held by institutional investors. 8.0% of GDS shares are held by insiders. Comparatively, 72.9% of Rumble shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares GDS and Rumble’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GDS	$10.17 billion	0.22	-$606.18 million	($3.21)	-3.59
Rumble	$80.96 million	28.46	-$116.42 million	($0.64)	-9.28

Rumble has lower revenue, but higher earnings than GDS. Rumble 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 GDS and Rumble’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%
Rumble	-161.62%	-46.51%	-38.66%

Summary

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

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.

About Rumble

Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.