Bit Digital (NASDAQ:BTBT – Get Free Report) and GDS (NASDAQ:GDS – Get Free Report) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.
Insider & Institutional Ownership
47.7% of Bit Digital shares are held by institutional investors. Comparatively, 33.7% of GDS shares are held by institutional investors. 2.0% of Bit Digital shares are held by insiders. Comparatively, 8.0% of GDS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Bit Digital and GDS”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bit Digital | $113.56 million | 5.62 | -$80.32 million | ($1.06) | -1.67 |
| GDS | $1.63 billion | 4.06 | $132.10 million | $2.15 | 15.40 |
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.
Volatility and Risk
Bit Digital has a beta of 3.97, suggesting that its stock price is 297% more volatile than the S&P 500. Comparatively, GDS has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.
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% |
Analyst Ratings
This is a summary of current ratings and target prices for Bit Digital and GDS, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bit Digital | 1 | 1 | 3 | 0 | 2.40 |
| GDS | 0 | 2 | 3 | 1 | 2.83 |
Bit Digital presently has a consensus target price of $4.38, suggesting a potential upside of 147.18%. GDS has a consensus target price of $48.12, suggesting a potential upside of 45.32%. Given Bit Digital’s higher probable upside, equities research analysts plainly believe Bit Digital is more favorable than GDS.
Summary
GDS beats Bit Digital on 10 of the 14 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.
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