VNET Group (NASDAQ:VNET) and Tenable (NASDAQ:TENB) Financial Contrast

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VNET Group	$1.42 billion	1.76	-$36.01 million	($1.37)	-6.77
Tenable	$999.41 million	2.94	-$36.12 million	($0.10)	-266.90

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.

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%

Volatility and Risk

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for VNET Group and Tenable, as provided 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 price target of $19.03, suggesting a potential upside of 105.06%. Tenable has a consensus price target of $29.16, suggesting a potential upside of 9.25%. Given VNET Group’s higher probable upside, equities analysts plainly believe VNET Group is more favorable than Tenable.

Insider and Institutional Ownership

72.8% of VNET Group shares are held by institutional investors. Comparatively, 89.1% of Tenable shares are held by institutional investors. 12.1% of VNET Group shares are held by insiders. Comparatively, 1.7% of Tenable shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

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.