Contrasting VNET Group (NASDAQ:VNET) & Tenable (NASDAQ:TENB)

VNET Group (NASDAQ:VNET) and Tenable (NASDAQ:TENB) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Risk and Volatility

VNET Group has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, Tenable has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Insider and Institutional Ownership

72.8% of VNET Group shares are owned by institutional investors. Comparatively, 89.1% of Tenable shares are owned by institutional investors. 12.1% of VNET Group shares are owned by company insiders. Comparatively, 1.7% of Tenable shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares VNET Group and Tenable’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%
Tenable	-1.15%	7.85%	1.49%

Analyst Ratings

This is a breakdown of current ratings and price targets for VNET Group and Tenable, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VNET Group	1	1	3	0	2.40
Tenable	1	10	9	0	2.40

VNET Group presently has a consensus target price of $19.03, indicating a potential upside of 110.74%. Tenable has a consensus target price of $29.16, indicating a potential upside of 8.31%. Given VNET Group’s higher probable upside, equities analysts clearly believe VNET Group is more favorable than Tenable.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VNET Group	$1.42 billion	1.72	-$36.01 million	($1.37)	-6.59
Tenable	$999.41 million	2.97	-$36.12 million	($0.10)	-269.20

VNET Group has higher revenue and earnings than Tenable. Tenable 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

Tenable beats VNET Group on 8 of the 13 factors compared between the two stocks.

About VNET Group

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 Tenable

Tenable Holdings, Inc. provides cyber exposure solutions for in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Its platforms include Tenable Vulnerability Management, a cloud-delivered software as a service that provides organizations with a risk-based view of traditional and modern attack surfaces; Tenable Cloud Security, a cloud-native cloud security solutions for security teams to continuously assess the security posture; Tenable Identity Exposure, a solution to secure Active Directory environments; Tenable Web App Scanning, which provides scanning for modern web applications; Tenable Lumin Exposure View, a measurement tool; Tenable Attack Surface Management, an external attack surface management solution; Tenable Security Center, an on-premises solution that provides a risk-based view of an organization’s IT, security and compliance posture; and Tenable OT Security, an operational technology security solution which provides threat detection, asset tracking, vulnerability management, and configuration control capabilities. The company also offers Nessus, a vulnerability assessment solution for cybersecurity industry and enterprise platform; and Nessus Expert, that enables users to programmatically detect cloud infrastructure misconfigurations and vulnerabilities in the design and build phase. Tenable Holdings, Inc. was founded in 2002 and is headquartered in Columbia, Maryland.