Head-To-Head Analysis: 21Vianet Group (VNET) vs. Its Competitors

21Vianet Group (NASDAQ: VNET) is one of 196 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare 21Vianet Group to similar companies based on the strength of its earnings, risk, institutional ownership, dividends, profitability, analyst recommendations and valuation.

Valuation & Earnings

This table compares 21Vianet Group and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
21Vianet Group $552.65 million $29.93 million -7.25
21Vianet Group Competitors $2.14 billion $366.28 million 16.91

21Vianet Group’s peers have higher revenue and earnings than 21Vianet Group. 21Vianet Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

21Vianet Group has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, 21Vianet Group’s peers have a beta of 1.27, indicating that their average stock price is 27% more volatile than the S&P 500.

Profitability

This table compares 21Vianet Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
21Vianet Group -21.28% -4.94% -2.45%
21Vianet Group Competitors -21.20% -51.40% -4.82%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for 21Vianet Group and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
21Vianet Group 0 1 1 0 2.50
21Vianet Group Competitors 680 4431 7442 166 2.56

21Vianet Group currently has a consensus target price of $8.50, suggesting a potential upside of 10.53%. As a group, “IT Services & Consulting” companies have a potential downside of 0.28%. Given 21Vianet Group’s higher probable upside, research analysts plainly believe 21Vianet Group is more favorable than its peers.

Institutional & Insider Ownership

19.7% of 21Vianet Group shares are held by institutional investors. Comparatively, 62.5% of shares of all “IT Services & Consulting” companies are held by institutional investors. 16.2% of shares of all “IT Services & Consulting” companies are held by 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.

Summary

21Vianet Group peers beat 21Vianet Group on 8 of the 12 factors compared.

21Vianet Group Company Profile

21Vianet Group, Inc. is a carrier-neutral Internet data center services provider. The Company hosts its customers’ servers and networking equipment and provides interconnectivity. The Company also provides managed network services to enable customers to deliver data across the Internet through its data transmission network and smart routing technology. The Company provides value-added services, such as content delivery network (CDN) services, virtual private network (VPN) services and last-mile wired broadband services. It offers public cloud services, private cloud and hybrid services. In addition, the Company also offers container-based data center service. The Company’s service offerings include hosting and related services, and managed network services. The Company provides hosting and related services to house servers and networking equipment in its data centers and connects them through its data transmission network, and offers other hosting related value-added services.

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