Analyzing Chindata Group (NASDAQ:CD) and Vinci Compass Investments (NASDAQ:VINP)

Chindata Group (NASDAQ:CD) and Vinci Compass Investments (NASDAQ:VINP) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Risk and Volatility

Chindata Group has a beta of 5.06, meaning that its share price is 406% more volatile than the S&P 500. Comparatively, Vinci Compass Investments has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.

Earnings and Valuation

This table compares Chindata Group and Vinci Compass Investments”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chindata Group	$2.58 million	429.05	-$3.30 million	($0.03)	-335.33
Vinci Compass Investments	$1.06 billion	0.55	$45.80 million	$0.70	12.66

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

Institutional and Insider Ownership

30.8% of Chindata Group shares are owned by institutional investors. Comparatively, 34.1% of Vinci Compass Investments shares are owned by institutional investors. 62.8% of Chindata Group shares are owned by insiders. Comparatively, 49.3% of Vinci Compass Investments shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Chindata Group and Vinci Compass Investments, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chindata Group	1	0	0	0	1.00
Vinci Compass Investments	1	1	1	0	2.00

Vinci Compass Investments has a consensus target price of $14.00, indicating a potential upside of 58.00%. Given Vinci Compass Investments’ stronger consensus rating and higher probable upside, analysts plainly believe Vinci Compass Investments is more favorable than Chindata Group.

Profitability

This table compares Chindata Group and Vinci Compass Investments’ 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
Vinci Compass Investments	N/A	N/A	N/A

Summary

Vinci Compass Investments beats Chindata Group on 8 of the 11 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 Vinci Compass Investments

Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is based in Rio de Janeiro, Brazil.