Analyzing XP (NASDAQ:XP) and Chindata Group (NASDAQ:CD)

Chindata Group (NASDAQ:CD) and XP (NASDAQ:XP) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Risk & Volatility

Chindata Group has a beta of 5.06, meaning that its share price is 406% more volatile than the S&P 500. Comparatively, XP has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Institutional & Insider Ownership

30.8% of Chindata Group shares are held by institutional investors. Comparatively, 59.2% of XP shares are held by institutional investors. 5.5% of Chindata Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Chindata Group and XP”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chindata Group	$1.87 million	515.29	-$5.10 million	($0.03)	-292.00
XP	$3.30 billion	4.96	$925.91 million	$1.91	15.92

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

Profitability

This table compares Chindata Group and XP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chindata Group	N/A	N/A	N/A
XP	27.20%	22.19%	1.33%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Chindata Group and XP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chindata Group	1	0	0	0	1.00
XP	0	2	5	0	2.71

XP has a consensus target price of $28.80, suggesting a potential downside of 5.29%. Given XP’s stronger consensus rating and higher probable upside, analysts plainly believe XP is more favorable than Chindata Group.

Summary

XP beats Chindata Group on 11 of the 14 factors compared between the two stocks.

About Chindata Group

Chindata Group Holdings Limited provides carrier-neutral hyperscale data center solutions in Mainland China, India, and Southeast Asia. It offers artificial intelligence, cloud computing, smart cities and homes, online entertainment, and other on-demand services. The company also provides internet data center colocation and rental services; and technical and consulting services. Its integrated data center solutions include infrastructure, power supply, connectivity and operation and maintenance, and tailor-made to their scale and requirements throughout the planning, design, construction, and operation process. The company was formerly known as BCPE Bridge Stack Limited and changed its name to Chindata Group Holdings Limited in April 2020. Chindata Group Holdings Limited was founded in 2015 and is headquartered in Beijing, China.

About XP

XP Inc. provides financial products and services in Brazil. It offers securities brokerage, private pension plans, commercial, and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth customers and institutional clients. The company also offers XP Educação, an online financial education portal that offers seminars, classes, and learning tools to help teach individuals on topics, such as basics of investing, techniques, and investment strategies, as well as insurance brokerage services. In addition, it operates XP Platform, an open product platform that provides clients to access investment products in the market, including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds, and others. The company was founded in 2001 and is based in São Paulo, Brazil.