Reviewing VNET Group (NASDAQ:VNET) & CoreWeave (NASDAQ:CRWV)

CoreWeave (NASDAQ:CRWVGet Free Report) and VNET Group (NASDAQ:VNETGet Free Report) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Insider & Institutional Ownership

72.8% of VNET Group shares are held by institutional investors. 24.2% of CoreWeave shares are held by insiders. Comparatively, 12.1% of VNET Group 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.

Analyst Recommendations

This is a summary of recent ratings and target prices for CoreWeave and VNET Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoreWeave 3 10 21 0 2.53
VNET Group 1 1 4 0 2.50

CoreWeave presently has a consensus target price of $141.57, suggesting a potential upside of 57.68%. VNET Group has a consensus target price of $16.90, suggesting a potential upside of 153.34%. Given VNET Group’s higher probable upside, analysts clearly believe VNET Group is more favorable than CoreWeave.

Valuation & Earnings

This table compares CoreWeave and VNET Group”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CoreWeave $5.13 billion 8.03 -$1.17 billion ($3.65) -24.60
VNET Group $1.42 billion 1.27 -$36.01 million ($1.37) -4.87

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

Profitability

This table compares CoreWeave and VNET Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CoreWeave -25.41% -47.95% -3.79%
VNET Group -22.29% -36.25% -4.43%

Volatility & Risk

CoreWeave has a beta of 7.44, indicating that its stock price is 644% more volatile than the S&P 500. Comparatively, VNET Group has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

About CoreWeave

(Get Free Report)

CoreWeave, Inc. engages in the powers of the creation and delivery of the intelligence that drives innovation. It offers a solution used by organizations of all sizes that require sophisticated AI computing, from the largest of enterprises to small, well-funded start-ups. The company was founded by Michael Intrator, Brian Venturo, and Brannin McBee on September 21, 2017 and is headquartered in Livingston, NJ.

About VNET Group

(Get Free Report)

VNET Group, Inc., an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet. The company also provides server administration services, such as operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

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