Analyzing CoreWeave (NASDAQ:CRWV) and VNET Group (NASDAQ:VNET)

VNET Group (NASDAQ:VNETGet Free Report) and CoreWeave (NASDAQ:CRWVGet Free Report) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Volatility and Risk

VNET Group has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, CoreWeave has a beta of 7.45, indicating that its share price is 645% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for VNET Group and CoreWeave, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VNET Group 1 1 4 0 2.50
CoreWeave 3 10 22 0 2.54

VNET Group presently has a consensus price target of $17.40, suggesting a potential upside of 164.40%. CoreWeave has a consensus price target of $141.10, suggesting a potential upside of 51.44%. Given VNET Group’s higher probable upside, research analysts clearly believe VNET Group is more favorable than CoreWeave.

Profitability

This table compares VNET Group and CoreWeave’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VNET Group -22.01% -31.59% -4.42%
CoreWeave -25.41% -47.95% -3.79%

Insider & Institutional Ownership

72.8% of VNET Group shares are held by institutional investors. 12.1% of VNET Group shares are held by insiders. Comparatively, 24.2% of CoreWeave shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares VNET Group and CoreWeave”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VNET Group $10.74 billion 0.17 -$36.01 million ($1.37) -4.80
CoreWeave $5.13 billion 8.33 -$1.17 billion ($3.65) -25.53

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

Summary

VNET Group beats CoreWeave on 8 of the 14 factors compared between the two stocks.

About VNET Group

(Get Free Report)

VNET Group, Inc., an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet. The company also provides server administration services, such as operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

About CoreWeave

(Get Free Report)

CoreWeave, Inc. engages in the powers of the creation and delivery of the intelligence that drives innovation. It offers a solution used by organizations of all sizes that require sophisticated AI computing, from the largest of enterprises to small, well-funded start-ups. The company was founded by Michael Intrator, Brian Venturo, and Brannin McBee on September 21, 2017 and is headquartered in Livingston, NJ.

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