Comparing XP (NASDAQ:XP) and Chindata Group (NASDAQ:CD)

XP (NASDAQ:XP) and Chindata Group (NASDAQ:CD) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.

Earnings & Valuation

This table compares XP and Chindata Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XP	$3.30 billion	4.96	$925.91 million	$1.91	15.93
Chindata Group	$2.58 million	326.70	-$5.10 million	($0.03)	-255.33

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

Institutional & Insider Ownership

59.2% of XP shares are held by institutional investors. Comparatively, 30.8% of Chindata Group shares are held by institutional investors. 5.5% of Chindata Group shares are held by company insiders. 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.

Profitability

This table compares XP and Chindata Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XP	27.20%	22.19%	1.33%
Chindata Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for XP and Chindata Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XP	0	2	5	0	2.71
Chindata Group	1	0	0	0	1.00

XP presently has a consensus price target of $28.80, indicating a potential downside of 5.33%. Given XP’s stronger consensus rating and higher possible upside, equities research analysts plainly believe XP is more favorable than Chindata Group.

Volatility and Risk

XP has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Chindata Group has a beta of 5.06, indicating that its stock price is 406% more volatile than the S&P 500.

Summary

XP beats Chindata Group on 11 of the 14 factors compared between the two stocks.

About XP

XP Inc. provides financial products and services in Brazil. It offers securities brokerage, private pension plans, commercial, and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits; product structuring and capital markets services for corporate clients and issuers of fixed income products; advisory services for mass-affluent and institutional clients; and wealth management services for high-net-worth customers and institutional clients. The company also offers XP Educação, an online financial education portal that offers seminars, classes, and learning tools to help teach individuals on topics, such as basics of investing, techniques, and investment strategies, as well as insurance brokerage services. In addition, it operates XP Platform, an open product platform that provides clients to access investment products in the market, including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds, and others. The company was founded in 2001 and is based in São Paulo, Brazil.

About Chindata Group

Chindata Group Holdings Limited provides carrier-neutral hyperscale data center solutions in Mainland China, India, and Southeast Asia. It offers artificial intelligence, cloud computing, smart cities and homes, online entertainment, and other on-demand services. The company also provides internet data center colocation and rental services; and technical and consulting services. Its integrated data center solutions include infrastructure, power supply, connectivity and operation and maintenance, and tailor-made to their scale and requirements throughout the planning, design, construction, and operation process. The company was formerly known as BCPE Bridge Stack Limited and changed its name to Chindata Group Holdings Limited in April 2020. Chindata Group Holdings Limited was founded in 2015 and is headquartered in Beijing, China.