GDS (NASDAQ:GDS – Get Free Report) and Taboola.com (NASDAQ:TBLA – Get Free Report) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Analyst Ratings
This is a summary of recent ratings and target prices for GDS and Taboola.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GDS | 0 | 1 | 2 | 1 | 3.00 |
| Taboola.com | 0 | 0 | 4 | 0 | 3.00 |
GDS currently has a consensus target price of $18.47, indicating a potential downside of 6.21%. Taboola.com has a consensus target price of $5.31, indicating a potential upside of 49.23%. Given Taboola.com’s higher possible upside, analysts clearly believe Taboola.com is more favorable than GDS.
Volatility and Risk
Institutional & Insider Ownership
33.7% of GDS shares are held by institutional investors. Comparatively, 42.9% of Taboola.com shares are held by institutional investors. 8.0% of GDS shares are held by insiders. Comparatively, 22.4% of Taboola.com shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares GDS and Taboola.com”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GDS | $1.40 billion | 2.68 | -$606.18 million | ($3.05) | -6.46 |
| Taboola.com | $1.44 billion | 0.72 | -$82.04 million | ($0.10) | -35.60 |
Taboola.com has higher revenue and earnings than GDS. Taboola.com 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 Taboola.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GDS | -35.97% | -8.22% | -1.99% |
| Taboola.com | -1.96% | -1.68% | -1.04% |
Summary
Taboola.com beats GDS on 11 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 Taboola.com
Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.
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