GDS (NASDAQ:GDS) versus AirSculpt Technologies (NASDAQ:AIRS) Critical Analysis

GDS (NASDAQ:GDS) and AirSculpt Technologies (NASDAQ:AIRS) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Volatility & Risk

GDS has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, AirSculpt Technologies has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500.

Institutional & Insider Ownership

33.7% of GDS shares are owned by institutional investors. Comparatively, 91.5% of AirSculpt Technologies shares are owned by institutional investors. 8.0% of GDS shares are owned by insiders. Comparatively, 44.6% of AirSculpt Technologies shares are owned by 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 AirSculpt Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GDS	23.83%	15.62%	5.16%
AirSculpt Technologies	-7.39%	-4.98%	-2.36%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GDS	$12.08 billion	0.56	$132.10 million	$1.57	22.31
AirSculpt Technologies	$151.82 million	2.48	-$11.67 million	($0.17)	-31.35

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

Analyst Recommendations

This is a summary of current recommendations for GDS and AirSculpt Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GDS	0	3	7	1	2.82
AirSculpt Technologies	1	1	0	0	1.50

GDS currently has a consensus price target of $48.04, indicating a potential upside of 37.17%. AirSculpt Technologies has a consensus price target of $4.50, indicating a potential downside of 15.57%. Given GDS’s stronger consensus rating and higher possible upside, research analysts plainly believe GDS is more favorable than AirSculpt Technologies.

Summary

GDS beats AirSculpt Technologies on 11 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 AirSculpt Technologies

AirSculpt Technologies, Inc., together with its subsidiaries, focuses on operating as a holding company for EBS Intermediate Parent LLC that provides body contouring procedure services in the United States. The company offers AirSculpt, a next-generation body contouring procedure that removes unwanted fat and tightens skin in a minimally invasive procedure. It also provides AirSculpt+, a procedure that permanently removes fat and tightens the skin with unparalleled precision and finesse; and AirSculpt Smooth, an advanced cellulite removal tool. In addition, it provides fat removal procedures across treatment areas, such as the stomach, back, and buttocks; and fat transfer procedures that use the patient’s own fat cells to enhance the breasts, buttocks, hips, or other areas. The company’s body contouring procedures also include the Power BBL, a Brazilian butt lift procedure; the Up a Cup, a breast enhancement procedure; and the Hip Flip, an hourglass contouring procedure. It operates various centers. The company was founded in 2012 and is headquartered in Miami Beach, Florida.