Virtus Investment Partners (NASDAQ:VRTS) & Chindata Group (NASDAQ:CD) Head to Head Review

Chindata Group (NASDAQ:CD) and Virtus Investment Partners (NASDAQ:VRTS) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Valuation and Earnings

This table compares Chindata Group and Virtus Investment Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chindata Group	$1.87 million	509.41	-$5.10 million	($0.03)	-288.67
Virtus Investment Partners	$819.58 million	1.06	$121.75 million	$17.55	7.49

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

Profitability

This table compares Chindata Group and Virtus Investment Partners’ 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
Virtus Investment Partners	13.42%	21.56%	5.27%

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, Virtus Investment Partners has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Chindata Group and Virtus Investment Partners, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chindata Group	1	0	0	0	1.00
Virtus Investment Partners	2	2	1	0	1.80

Virtus Investment Partners has a consensus target price of $143.00, indicating a potential upside of 8.72%. Given Virtus Investment Partners’ stronger consensus rating and higher possible upside, analysts plainly believe Virtus Investment Partners is more favorable than Chindata Group.

Insider and Institutional Ownership

30.8% of Chindata Group shares are owned by institutional investors. Comparatively, 80.5% of Virtus Investment Partners shares are owned by institutional investors. 5.5% of Chindata Group shares are owned by insiders. Comparatively, 6.4% of Virtus Investment Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Virtus Investment Partners beats Chindata Group on 12 of the 14 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 Virtus Investment Partners

Virtus Investment Partners, Inc. is a publicly owned investment manager. The firm primarily provides its services to individual and institutional clients. It launches separate client focused equity and fixed income portfolios. The firm launches equity, fixed income, and balanced mutual funds for its clients. It invests in the public equity, fixed income, and real estate markets. The firm also invests in exchange traded funds. It employs a multi manager approach for its products. The firm employs quantitative analysis to make its investments. It benchmarks the performance of its portfolios against the S&P 500 Index. The firm conducts in-house research to make its investments. Virtus Investment Partners, Inc. was founded in 1988 and is based in Hartford, Connecticut.