DoubleVerify (NYSE:DV) and GDS (NASDAQ:GDS) Financial Contrast

DoubleVerify (NYSE:DVGet Rating) and GDS (NASDAQ:GDSGet Rating) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Risk & Volatility

DoubleVerify has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, GDS has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Earnings and Valuation

This table compares DoubleVerify and GDS’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DoubleVerify $332.74 million 11.69 $29.31 million $0.17 139.94
GDS $1.23 billion 4.80 -$184.02 million ($1.37) -22.99

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

Institutional and Insider Ownership

85.1% of DoubleVerify shares are owned by institutional investors. Comparatively, 53.9% of GDS shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares DoubleVerify and GDS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DoubleVerify 7.80% 5.63% 5.00%
GDS -18.43% -6.28% -2.25%

Analyst Ratings

This is a summary of recent ratings for DoubleVerify and GDS, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DoubleVerify 0 2 10 0 2.83
GDS 0 0 7 0 3.00

DoubleVerify currently has a consensus price target of $34.27, indicating a potential upside of 44.06%. GDS has a consensus price target of $57.43, indicating a potential upside of 82.39%. Given GDS’s stronger consensus rating and higher possible upside, analysts clearly believe GDS is more favorable than DoubleVerify.

Summary

DoubleVerify beats GDS on 10 of the 13 factors compared between the two stocks.

DoubleVerify Company Profile (Get Rating)

DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, data, and analytics in the United States and internationally. Its solutions provide advertisers unbiased data analytics that enable advertisers to increase the effectiveness, quality and return on their digital advertising investments. The company's solutions include DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud, brand safety, viewability, and geography for each digital ad; DV Authentic Attention solution that provides exposure and engagement predictive analytics to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. Its solutions also comprise DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. The company's software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, connected TV, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.

GDS Company Profile (Get Rating)

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. The company was founded in 2001 and is headquartered in Shanghai, the People's Republic of China.

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