Head to Head Contrast: Mogo (NASDAQ:MOGO) & GDS (NASDAQ:GDS)

GDS (NASDAQ:GDS) and Mogo (NASDAQ:MOGO) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GDS	30.70%	17.94%	6.11%
Mogo	11.41%	7.78%	3.34%

Risk & Volatility

GDS has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Mogo has a beta of 2.71, meaning that its share price is 171% more volatile than the S&P 500.

Insider and Institutional Ownership

33.7% of GDS shares are held by institutional investors. Comparatively, 14.8% of Mogo shares are held by institutional investors. 8.0% of GDS shares are held by company insiders. Comparatively, 12.3% of Mogo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GDS	$1.63 billion	3.38	$132.10 million	$2.15	12.82
Mogo	$69.27 million	0.36	-$9.98 million	$0.23	4.57

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for GDS and Mogo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GDS	0	2	3	1	2.83
Mogo	1	1	0	0	1.50

GDS currently has a consensus target price of $48.12, suggesting a potential upside of 74.53%. Given GDS’s stronger consensus rating and higher probable upside, analysts plainly believe GDS is more favorable than Mogo.

Summary

GDS beats Mogo on 13 of the 15 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 Mogo

Mogo Inc. operates as a digital finance company in Canada, Europe, and internationally. The company's digital solutions help build wealth and achieve financial freedom. It provides MogoTrade, a stock trading app; Moka; and MogoMoney that provides online personal loans. The company also offers digital loans and mortgages; and operates a digital payments platform that powers next-generation card programs for both global corporations and fintech companies in Europe and Canada. Mogo Inc. is headquartered in Vancouver, Canada.