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

Profitability

This table compares GDS Holdings Ltd – and CA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GDS Holdings Ltd – -22.52% -10.40% -3.36%
CA 18.59% 16.54% 8.01%

Institutional & Insider Ownership

67.4% of CA shares are held by institutional investors. 0.9% of CA shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for GDS Holdings Ltd – and CA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GDS Holdings Ltd – 0 0 1 0 3.00
CA 3 9 5 0 2.12

GDS Holdings Ltd – currently has a consensus target price of $14.00, indicating a potential downside of 4.44%. CA has a consensus target price of $34.66, indicating a potential upside of 1.55%. Given CA’s higher possible upside, analysts clearly believe CA is more favorable than GDS Holdings Ltd -.

Dividends

CA pays an annual dividend of $1.02 per share and has a dividend yield of 3.0%. GDS Holdings Ltd – does not pay a dividend. CA pays out 56.7% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares GDS Holdings Ltd – and CA’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
GDS Holdings Ltd – $198.29 million 6.58 $52.80 million N/A N/A
CA $4.06 billion 3.54 $1.25 billion $1.80 18.96

CA has higher revenue and earnings than GDS Holdings Ltd -.

Summary

CA beats GDS Holdings Ltd – on 10 of the 13 factors compared between the two stocks.

About GDS Holdings Ltd –

GDS Holdings Ltd is a developer and operator of data centers in China. The Company is engaged in design, build-out and operation of data centers. It operates as a carrier and cloud neutral, which enables its customers to connect to all the People’s Republic of China telecommunications carriers, and to access a number of the People’s Republic of China cloud service providers, whom it hosts in its facilities. The Company’s base of approximately 370 customers consists of Internet companies, financial institutions, telecommunications and information technology (IT) service providers, and domestic private sector and multinational corporations. It serves a community of approximately 160 People’s Republic of China and foreign financial institutions across the banking, insurance, asset management, brokerage, digital payment and financial information verticals. The Company operates its data centers in Shanghai, Beijing, Shenzhen, Guangzhou and Chengdu.

About CA

CA, Inc. (CA) is engaged in providing software solutions enabling customers to plan, develop, manage and secure applications and enterprise environments across distributed, cloud, mobile and mainframe platforms. The Company operates through three business segments: Mainframe Solutions, Enterprise Solutions and Services. Its Mainframe Solutions and Enterprise Solutions segments comprise the Company’s software business organized by the nature of its software offerings and the platform on which the products operate. The Services segment comprises product implementation, consulting, customer education, customer training and application management services. CA’s Mainframe Solutions segment consists of various product offerings, including Application Development, Databases and Database Management, Security & Compliance, and Systems and Operations Management. The Enterprise Solutions segment consists of various product offerings, including Agile Management, DevOps and Security.

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