Critical Comparison: BlackRock (NYSE:BLK) and Chindata Group (NASDAQ:CD)

Chindata Group (NASDAQ:CD) and BlackRock (NYSE:BLK) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

30.8% of Chindata Group shares are held by institutional investors. Comparatively, 80.7% of BlackRock shares are held by institutional investors. 5.5% of Chindata Group shares are held by company insiders. Comparatively, 1.9% of BlackRock shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Chindata Group and BlackRock”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chindata Group	$1.87 million	702.94	-$5.10 million	($0.03)	-398.33
BlackRock	$24.22 billion	6.82	$5.55 billion	$41.84	25.47

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

Profitability

This table compares Chindata Group and BlackRock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chindata Group	N/A	N/A	N/A
BlackRock	24.09%	14.90%	4.97%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Chindata Group and BlackRock, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chindata Group	1	0	0	0	1.00
BlackRock	0	3	14	1	2.89

BlackRock has a consensus target price of $1,303.35, indicating a potential upside of 22.29%. Given BlackRock’s stronger consensus rating and higher possible upside, analysts clearly believe BlackRock is more favorable than Chindata Group.

Volatility and Risk

Chindata Group has a beta of 5.06, indicating that its stock price is 406% more volatile than the S&P 500. Comparatively, BlackRock has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Summary

BlackRock beats Chindata Group on 12 of the 15 factors compared between the two stocks.

About Chindata Group

Chindata Group Holdings Limited provides carrier-neutral hyperscale data center solutions in Mainland China, India, and Southeast Asia. It offers artificial intelligence, cloud computing, smart cities and homes, online entertainment, and other on-demand services. The company also provides internet data center colocation and rental services; and technical and consulting services. Its integrated data center solutions include infrastructure, power supply, connectivity and operation and maintenance, and tailor-made to their scale and requirements throughout the planning, design, construction, and operation process. The company was formerly known as BCPE Bridge Stack Limited and changed its name to Chindata Group Holdings Limited in April 2020. Chindata Group Holdings Limited was founded in 2015 and is headquartered in Beijing, China.

About BlackRock

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California.