Professional Diversity Network (NASDAQ:IPDN) and GDS (NASDAQ:GDS) 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, risk, dividends, profitability, earnings, institutional ownership and valuation.
Volatility & Risk
Professional Diversity Network has a beta of 2.91, suggesting that its share price is 191% more volatile than the S&P 500. Comparatively, GDS has a beta of 2.68, suggesting that its share price is 168% more volatile than the S&P 500.
2.6% of Professional Diversity Network shares are owned by institutional investors. Comparatively, 39.7% of GDS shares are owned by institutional investors. 13.0% of Professional Diversity Network shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Professional Diversity Network and GDS’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Professional Diversity Network||$22.05 million||0.54||-$22.28 million||N/A||N/A|
|GDS||$248.40 million||11.05||-$48.38 million||($0.51)||-45.84|
Professional Diversity Network has higher earnings, but lower revenue than GDS.
This is a summary of recent ratings for Professional Diversity Network and GDS, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Professional Diversity Network||0||0||0||0||N/A|
GDS has a consensus target price of $38.89, suggesting a potential upside of 66.33%. Given GDS’s higher probable upside, analysts clearly believe GDS is more favorable than Professional Diversity Network.
This table compares Professional Diversity Network and GDS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Professional Diversity Network||-66.34%||-56.57%||-32.69%|
GDS beats Professional Diversity Network on 9 of the 12 factors compared between the two stocks.
About Professional Diversity Network
Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. The company operates through three segments: Professional Diversity Network, National Association of Professional Women, and Noble Voice Operations. It serves various cultural groups, such as women; Hispanic-Americans; African-Americans; Asian-Americans; disabled; military professionals; lesbians, gays, bisexuals, and transgenders; and students and graduates. The company offers single and multiple job postings, recruitment media, talent recruitment communities, corporate memberships, and hiring campaign marketing and advertising, as well as e-newsletter marketing, research, and outreach services. It also provides consumer advertising and consumer marketing solutions through advertising and job postings on its Websites. The company serves federal, state, and local governments, as well as companies and contractors that serve governmental entities; small and medium sized businesses; and large enterprises. As of December 31, 2017, it had approximately 10,266,000 registered users. The company was founded in 2003 and is headquartered in Chicago, Illinois. Professional Diversity Network, Inc. is a subsidiary of Cosmic Forward Limited.
GDS Holdings Limited, together with its subsidiaries, designs, builds, and operates data centers in the People's Republic of China. The company provides colocation, managed hosting, and managed cloud services. Its data centers service customers that primarily operate in the Internet and banking industries in Shanghai, Beijing, Shenzhen, Guangzhou, and Chengdu. The company serves Internet companies, financial institutions, telecommunications and IT service providers, and large domestic private sector and multinational corporations. GDS Holdings Limited was incorporated in 2006 and is headquartered in Shanghai, the People's Republic of China.
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