Taboola.com (NASDAQ:TBLA) vs. GDS (NASDAQ:GDS) Head to Head Contrast

GDS (NASDAQ:GDS) and Taboola.com (NASDAQ:TBLA) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GDS	0	1	2	1	3.00
Taboola.com	0	0	4	0	3.00

GDS presently has a consensus target price of $18.47, suggesting a potential upside of 1.19%. Taboola.com has a consensus target price of $5.31, suggesting a potential upside of 48.39%. Given Taboola.com’s higher possible upside, analysts plainly believe Taboola.com is more favorable than GDS.

Insider & Institutional Ownership

33.7% of GDS shares are held by institutional investors. Comparatively, 42.9% of Taboola.com shares are held by institutional investors. 8.0% of GDS shares are held by company insiders. Comparatively, 22.4% of Taboola.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GDS	-35.97%	-8.22%	-1.99%
Taboola.com	-1.96%	-1.68%	-1.04%

Volatility and Risk

GDS has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, Taboola.com has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Valuation & Earnings

This table compares GDS and Taboola.com”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GDS	$1.40 billion	2.48	-$606.18 million	($3.05)	-5.98
Taboola.com	$1.44 billion	0.73	-$82.04 million	($0.10)	-35.80

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

Summary

Taboola.com beats GDS on 11 of the 13 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 Taboola.com

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.