Critical Survey: GDS (NASDAQ:GDS) vs. Gorilla Technology Group (NASDAQ:GRRR)

GDS (NASDAQ:GDS) and Gorilla Technology Group (NASDAQ:GRRR) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Volatility & Risk

GDS has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Gorilla Technology Group has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for GDS and Gorilla Technology Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GDS	0	2	6	2	3.00
Gorilla Technology Group	1	1	1	0	2.00

GDS presently has a consensus target price of $48.04, indicating a potential upside of 52.60%. Gorilla Technology Group has a consensus target price of $40.00, indicating a potential upside of 141.84%. Given Gorilla Technology Group’s higher possible upside, analysts clearly believe Gorilla Technology Group is more favorable than GDS.

Earnings and Valuation

This table compares GDS and Gorilla Technology Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GDS	$1.63 billion	3.86	$132.10 million	$1.57	20.05
Gorilla Technology Group	$101.36 million	4.27	-$11.28 million	$0.09	183.78

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

Insider & Institutional Ownership

33.7% of GDS shares are owned by institutional investors. Comparatively, 1.3% of Gorilla Technology Group shares are owned by institutional investors. 8.0% of GDS shares are owned by company insiders. Comparatively, 30.5% of Gorilla Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares GDS and Gorilla Technology Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GDS	23.83%	15.62%	5.16%
Gorilla Technology Group	N/A	N/A	N/A

Summary

GDS beats Gorilla Technology Group on 11 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 Gorilla Technology Group

Gorilla Technology Group Inc. provides video intelligence, Internet of Things (IoT) security, and edge content management hardware, software, and services in the Asia Pacific region. The company operates through three segments: Video IoT, Security Convergence, and Other segments. It offers intelligent video analytics AI models for various verticals, such as behavioral analytics, people/face recognition, vehicle analysis, object recognition, and business intelligence that can scan video for patterns and distinguish specific items using AI algorithms and metadata. The company also provides information technology (IT) and operational technology (OT) security convergence AI algorithms for system administrators and security engineers to detect suspicious behaviors in real time; network anomaly detection AI models; and endpoint malware and suspicious behavior detection AI models. In addition, it offers intelligent video analytics (IVA) appliances to analyze and turn unstructured video and picture data into structured data; IVAR appliance that provides insight into business and operations in a statistic dashboard; smart attendance to track employee health and safety, work hours, clock-ins/outs, and absenteeism, as well as to protect company assets and intellectual properties; event and video management system appliances to store event/object attributes in temporal-spatial big data database from Gorilla; and operation technology security appliance to monitor and control physical devices, processes, and infrastructure, as well as to protect industrial systems and networks from various threats. Further, the company provides smart retail SaaS for shopper demographics, visualized shopper behavior, and advanced data analytics, smart city and transportation SaaS for traffic management, public safety, and planning data; and endpoint security SaaS that protects endpoints against security threats. Gorilla Technology Group Inc. is headquartered in London, the United Kingdom.