21Vianet Group (NASDAQ: VNET) and Internap Corporation (NASDAQ:INAP) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for 21Vianet Group and Internap Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
21Vianet Group 0 1 1 0 2.50
Internap Corporation 0 1 2 1 3.00

21Vianet Group presently has a consensus price target of $8.50, indicating a potential upside of 8.83%. Internap Corporation has a consensus price target of $6.17, indicating a potential upside of 24.08%. Given Internap Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Internap Corporation is more favorable than 21Vianet Group.

Risk and Volatility

21Vianet Group has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Internap Corporation has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500.

Insider and Institutional Ownership

19.7% of 21Vianet Group shares are held by institutional investors. Comparatively, 83.5% of Internap Corporation shares are held by institutional investors. 12.1% of 21Vianet Group shares are held by company insiders. Comparatively, 3.7% of Internap Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
21Vianet Group -21.28% -4.94% -2.45%
Internap Corporation -45.52% -234.35% -5.73%

Earnings and Valuation

This table compares 21Vianet Group and Internap Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
21Vianet Group $552.65 million 1.59 $29.93 million ($1.06) -7.37
Internap Corporation $289.83 million 1.36 $71.04 million ($2.37) -2.10

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

About 21Vianet Group

21Vianet Group, Inc. is a carrier-neutral Internet data center services provider. The Company hosts its customers’ servers and networking equipment and provides interconnectivity. The Company also provides managed network services to enable customers to deliver data across the Internet through its data transmission network and smart routing technology. The Company provides value-added services, such as content delivery network (CDN) services, virtual private network (VPN) services and last-mile wired broadband services. It offers public cloud services, private cloud and hybrid services. In addition, the Company also offers container-based data center service. The Company’s service offerings include hosting and related services, and managed network services. The Company provides hosting and related services to house servers and networking equipment in its data centers and connects them through its data transmission network, and offers other hosting related value-added services.

About Internap Corporation

Internap Corporation is a technology provider of Internet infrastructure. The Company provides Internet infrastructure through both Colocation Business and Enterprise Services and Cloud Services. The Company operates through two segments: Data Center and Network Services, and Cloud and Hosting Services. Its Data Center and Network Services segment consists of colocation and Internet Protocol (IP) connectivity services. Colocation involves providing physical space within data centers and associated services, such as power, interconnection, environmental controls, monitoring and security while allowing its customers to deploy and manage their servers, storage and other equipment in its secure data centers. Its cloud and hosting services segment consists of hosted Infrastructure-as-a-Service as a cloud platform or through managed hosting. For both Infrastructure-as-a-Service options, the Company provides and maintains the hardware, data center infrastructure and interconnection.

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