Comparing GDS (NASDAQ:GDS) and Bit Digital (NASDAQ:BTBT)

Bit Digital (NASDAQ:BTBT) and GDS (NASDAQ:GDS) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Risk & Volatility

Bit Digital has a beta of 3.97, indicating that its stock price is 297% more volatile than the S&P 500. Comparatively, GDS has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.

Earnings & Valuation

This table compares Bit Digital and GDS”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bit Digital	$122.84 million	4.84	-$80.32 million	($1.06)	-1.56
GDS	$12.26 billion	0.51	$132.10 million	$2.15	14.55

GDS has higher revenue and earnings than Bit Digital. Bit Digital 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 Bit Digital and GDS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bit Digital	-237.19%	-10.66%	-6.81%
GDS	30.70%	17.94%	6.11%

Insider and Institutional Ownership

47.7% of Bit Digital shares are owned by institutional investors. Comparatively, 33.7% of GDS shares are owned by institutional investors. 2.0% of Bit Digital shares are owned by company insiders. Comparatively, 8.0% of GDS shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bit Digital	1	1	4	0	2.50
GDS	0	2	3	1	2.83

Bit Digital presently has a consensus price target of $4.38, suggesting a potential upside of 165.15%. GDS has a consensus price target of $48.12, suggesting a potential upside of 53.83%. Given Bit Digital’s higher possible upside, analysts clearly believe Bit Digital is more favorable than GDS.

Summary

GDS beats Bit Digital on 10 of the 15 factors compared between the two stocks.

About Bit Digital

Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was founded in 2015 and is headquartered in New York, New York.

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.