GDS (NASDAQ:GDS – Get Free Report) and Duos Technologies Group (NASDAQ:DUOT – Get Free Report) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Profitability
This table compares GDS and Duos Technologies Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GDS | 49.60% | 5.17% | 1.63% |
| Duos Technologies Group | -52.79% | -65.17% | -23.64% |
Volatility & Risk
GDS has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Duos Technologies Group has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GDS | 0 | 3 | 8 | 1 | 2.83 |
| Duos Technologies Group | 1 | 0 | 1 | 0 | 2.00 |
GDS currently has a consensus target price of $47.91, suggesting a potential upside of 9.16%. Duos Technologies Group has a consensus target price of $14.00, suggesting a potential upside of 87.17%. Given Duos Technologies Group’s higher probable upside, analysts clearly believe Duos Technologies Group is more favorable than GDS.
Institutional and Insider Ownership
33.7% of GDS shares are owned by institutional investors. Comparatively, 42.6% of Duos Technologies Group shares are owned by institutional investors. 8.0% of GDS shares are owned by insiders. Comparatively, 6.1% of Duos Technologies Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares GDS and Duos Technologies Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GDS | $1.41 billion | N/A | $476.47 million | $3.99 | 11.00 |
| Duos Technologies Group | $7.28 million | 21.45 | -$10.76 million | ($0.95) | -7.87 |
GDS has higher revenue and earnings than Duos Technologies Group. Duos Technologies Group is trading at a lower price-to-earnings ratio than GDS, indicating that it is currently the more affordable of the two stocks.
Summary
GDS beats Duos Technologies Group 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 Duos Technologies Group
Duos Technologies Group, Inc. designs, develops, deploys, and operates intelligent technology solutions in North America. The company provides solutions, such as Centraco, an enterprise information management software platform that consolidates data and events from multiple sources into a unified and distributive user interface; and truevue360, an integrated platform to develop and deploy artificial intelligence algorithms, including machine learning, computer vision, object detection, and deep neural network-based processing for real-time applications. Its proprietary applications include Railcar Inspection Portal that provides freight and transit railroad customers and select government agencies the ability to conduct fully automated railcar inspections of trains while they are moving at full speed. It also develops Automated Logistics Information System, which automates gatehouse operations, as well as develops solutions for rail, trucking, aviation, and other vehicle-based processes. In addition, the company provides consulting services, including consulting and auditing; software licensing with optional hardware sales; customer service training; and maintenance support. The company operates its services under the duostech brand. The company is headquartered in Jacksonville, Florida.
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