Snap (NYSE:SNAP) versus 21Vianet Group (VNET) Financial Review

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21Vianet Group (NASDAQ:VNET) and Snap (NYSE:SNAP) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Valuation and Earnings

This table compares 21Vianet Group and Snap’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
21Vianet Group $521.45 million 2.41 -$118.76 million ($0.24) -46.71
Snap $824.95 million 9.53 -$3.45 billion ($2.08) -2.93

21Vianet Group has higher earnings, but lower revenue than Snap. 21Vianet Group is trading at a lower price-to-earnings ratio than Snap, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares 21Vianet Group and Snap’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
21Vianet Group -18.44% 2.05% 0.98%
Snap -131.39% -49.42% -43.07%

Risk & Volatility

21Vianet Group has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, Snap has a beta of -0.49, suggesting that its stock price is 149% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for 21Vianet Group and Snap, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
21Vianet Group 0 0 2 0 3.00
Snap 9 18 8 0 1.97

Snap has a consensus target price of $11.65, indicating a potential upside of 91.36%. Given Snap’s higher probable upside, analysts plainly believe Snap is more favorable than 21Vianet Group.

Institutional & Insider Ownership

32.1% of 21Vianet Group shares are held by institutional investors. Comparatively, 21.7% of Snap shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

21Vianet Group beats Snap on 8 of the 13 factors compared between the two stocks.

21Vianet Group Company Profile

21Vianet Group, Inc. provides carrier-neutral Internet data center services to Internet companies, government entities, blue-chip enterprises, and small-to mid-sized enterprises in the People's Republic of China. It offers hosting and related services to house servers and networking equipment in its data centers, and connects them through a data transmission network; and other hosting related value-added services. Its hosting and related services include managed hosting services that offer data center space to house its customers' servers and networking equipment, and provide tailored server administration services; and interconnectivity services that enable customers to connect their servers with Internet backbones and other networks through its border gateway protocol network or single-line, dual-line, or multiple-line network. Its hosting and related services also comprise content delivery network services that optimize the speed and security of data transmission; cloud services that enable businesses to run their applications over the Internet using its IT infrastructure; virtual private network services; and other value-added services, such as firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services. In addition, the company provides traffic charts and analysis, gateway monitoring for servers, domain name system setup, defense mechanism against distributed denial of service attacks, basic setting of switches and routers, and virus protections; and managed network services consisting of hosting area network, and route optimization services. As of December 31, 2017, it operated 19 self-built and 38 partnered data centers located in approximately 20 cities with 29,080 cabinets. It has a strategic partnership with Microsoft Corporation. 21Vianet Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

Snap Company Profile

Snap Inc. operates as a camera company in the United States and internationally. The company offers Snapchat, a camera application that helps people to communicate through short videos and images. It also provides Camera, a tool to personalize and add context to Snaps; Friends Page that allows to creating and watching stories, chatting with groups, making voice and video calls, and communicating through a range of contextual stickers and Bitmojis; and Discover that helps to surface the most interesting stories from publishers, creators, and the community, based on a user's subscriptions and interests. In addition, the company offers Snap Map, which enables individuals to pinch on the camera screen for bringing a live map of their location, as well as showing nearby friends, popular stories, and a heatmap of recent Snaps posted to their story; Memories that allows users to choose to save the Snaps they create in a searchable personal collection, and users to create Snaps and stories from their saved Snaps and camera roll; and Spectacles, a hardware product that connects with Snapchat and capture video from a human perspective. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Venice, California.

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