Burning Rock Biotech (NASDAQ:BNR) vs. GDS (NASDAQ:GDS) Head to Head Analysis

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

Analyst Ratings

This is a summary of current ratings and price targets for Burning Rock Biotech and GDS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burning Rock Biotech	0	0	0	0	0.00
GDS	0	3	6	2	2.91

GDS has a consensus target price of $46.93, suggesting a potential upside of 11.56%. Given GDS’s stronger consensus rating and higher probable upside, analysts clearly believe GDS is more favorable than Burning Rock Biotech.

Risk & Volatility

Burning Rock Biotech has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, GDS has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Earnings and Valuation

This table compares Burning Rock Biotech and GDS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Burning Rock Biotech	$70.67 million	1.39	-$47.49 million	($1.90)	-4.79
GDS	$1.41 billion	5.67	$476.47 million	$3.38	12.45

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

Profitability

This table compares Burning Rock Biotech and GDS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Burning Rock Biotech	-26.04%	-23.61%	-15.73%
GDS	40.83%	1.40%	0.41%

Institutional and Insider Ownership

30.0% of Burning Rock Biotech shares are owned by institutional investors. Comparatively, 33.7% of GDS shares are owned by institutional investors. 30.3% of Burning Rock Biotech shares are owned by insiders. Comparatively, 8.0% of GDS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

GDS beats Burning Rock Biotech on 13 of the 15 factors compared between the two stocks.

About Burning Rock Biotech

Burning Rock Biotech Limited primarily develops and commercializes cancer therapy selection tests in the People's Republic of China. It operates in three segments: Central Laboratory Business, In-Hospital Business, and Pharma Research and Development Services. The company primarily offers next-generation sequencing-based tissue and liquid biopsy cancer therapy selection and prognosis prediction tests for various range of cancer types, including lung cancer, gastrointestinal cancer, prostate cancer, breast cancer, lymphomas, thyroid cancer, colorectal cancer, ovarian cancer, pancreatic cancer, and bladder cancer using tissue and liquid biopsy samples. Its principal products include OncoCompass IO, a corresponding test for liquid biopsy samples; OncoScreen IO, a pan-cancer test for tissue samples; and OncoCompass Target, a ctDNA liquid biopsy-based test for NSCLC. In addition, the company provides ColonCore for assessing microsatellite loci related to MSI status and detecting mutations in genes associated with gastrointestinal cancers; and brPROPHET, a pre-operative ctDNA detection and post-operative MRD calling for relapsed patients. Further, it has development and commercialization agreement with Myriad Genetics, Inc. to in-license Myriad myChoice tumor testing in China; licensing agreement with Oncocyte Corporation to in-license DetermaRx, a risk stratification test for early stage lung cancer patients in China; and collaborations on clinical trials and research studies with AstraZeneca, Bayer, Johnson & Johnson, CStone, BeiGene, Abbisko Therapeutics, and IMPACT Therapeutics and Merck KGaA. Additionally, the company offers OncoMaster, an automatic NGS data analysis and report interpretation machine for in-hospital model. Burning Rock Biotech Limited was incorporated in 2014 and is headquartered in Guangzhou, China.

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.