Bit Digital (NASDAQ:BTBT) & GDS (NASDAQ:GDS) Head-To-Head Analysis

GDS (NASDAQ:GDS) and Bit Digital (NASDAQ:BTBT) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GDS	30.70%	17.94%	6.11%
Bit Digital	-237.19%	-10.66%	-6.81%

Insider & Institutional Ownership

33.7% of GDS shares are held by institutional investors. Comparatively, 47.7% of Bit Digital shares are held by institutional investors. 8.0% of GDS shares are held by company insiders. Comparatively, 2.0% of Bit Digital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

GDS has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Bit Digital has a beta of 3.97, indicating that its stock price is 297% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for GDS and Bit Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GDS	0	2	3	1	2.83
Bit Digital	1	1	3	0	2.40

GDS presently has a consensus target price of $48.12, indicating a potential upside of 45.32%. Bit Digital has a consensus target price of $4.38, indicating a potential upside of 147.18%. Given Bit Digital’s higher possible upside, analysts clearly believe Bit Digital is more favorable than GDS.

Earnings & Valuation

This table compares GDS and Bit Digital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GDS	$1.63 billion	4.06	$132.10 million	$2.15	15.40
Bit Digital	$113.56 million	5.62	-$80.32 million	($1.06)	-1.67

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.

Summary

GDS beats Bit Digital on 10 of the 14 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 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.