GDS (NASDAQ:GDS – Get Free Report) and Real Brokerage (NASDAQ:REAX – Get Free Report) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.
Profitability
This table compares GDS and Real Brokerage’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GDS | 23.83% | 15.62% | 5.16% |
| Real Brokerage | -0.32% | -11.37% | -4.32% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for GDS and Real Brokerage, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GDS | 0 | 3 | 6 | 1 | 2.80 |
| Real Brokerage | 1 | 1 | 4 | 2 | 2.88 |
Insider & Institutional Ownership
33.7% of GDS shares are held by institutional investors. Comparatively, 53.3% of Real Brokerage shares are held by institutional investors. 8.0% of GDS shares are held by company insiders. Comparatively, 38.2% of Real Brokerage shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk & Volatility
GDS has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Real Brokerage has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.
Valuation & Earnings
This table compares GDS and Real Brokerage”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GDS | $12.08 billion | 0.59 | $132.10 million | $1.57 | 22.58 |
| Real Brokerage | $1.97 billion | 0.20 | -$8.10 million | ($0.03) | -60.00 |
GDS has higher revenue and earnings than Real Brokerage. Real Brokerage 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 Real Brokerage on 9 of the 15 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 Real Brokerage
The Real Brokerage Inc., together with its subsidiaries, operates as a real estate technology company in the United States and Canada. It operates in three segments: North American Brokerage, Real Title, and One Real Mortgage. It offers brokerage, title, and mortgage broker services. The company is based in Miami, Florida.
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