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AFRM vs. GDS: A Head-to-Head Stock Comparison

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Here’s a clear look at AFRM and GDS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

GDS’s market capitalization of 140.20 billion USD is significantly greater than AFRM’s 22.30 billion USD, highlighting its more substantial market valuation.

AFRM’s beta of 3.58 points to significantly higher volatility compared to GDS (beta: 0.23), suggesting AFRM has greater potential for both gains and losses relative to market movements.

GDS is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AFRM, on the other hand, is a domestic entity.

SymbolAFRMGDS
Company NameAffirm Holdings, Inc.GDS Holdings Limited
CountryUSCN
SectorTechnologyTechnology
IndustrySoftware - InfrastructureInformation Technology Services
CEOMax Roth LevchinWei Huang
Price69.19 USD33.98 USD
Market Cap22.30 billion USD140.20 billion USD
Beta3.580.23
ExchangeNASDAQNASDAQ
IPO DateJanuary 13, 2021November 2, 2016
ADRNoYes

Historical Performance

This chart compares the performance of AFRM and GDS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AFRM vs. GDS: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AFRM

-2.22%

Software - Infrastructure Industry

Max
80.61%
Q3
29.97%
Median
2.84%
Q1
-8.35%
Min
-56.26%

AFRM has a negative Return on Equity of -2.22%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

GDS

16.65%

Information Technology Services Industry

Max
47.24%
Q3
23.27%
Median
12.85%
Q1
2.22%
Min
-26.63%

GDS’s Return on Equity of 16.65% is on par with the norm for the Information Technology Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

AFRM vs. GDS: A comparison of their ROE against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Return on Invested Capital

AFRM

-0.85%

Software - Infrastructure Industry

Max
39.31%
Q3
11.97%
Median
1.67%
Q1
-7.10%
Min
-34.29%

AFRM has a negative Return on Invested Capital of -0.85%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

GDS

1.92%

Information Technology Services Industry

Max
28.29%
Q3
13.19%
Median
7.24%
Q1
0.23%
Min
-18.82%

GDS’s Return on Invested Capital of 1.92% is in line with the norm for the Information Technology Services industry, reflecting a standard level of efficiency in generating profits from its capital base.

AFRM vs. GDS: A comparison of their ROIC against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Net Profit Margin

AFRM

-2.07%

Software - Infrastructure Industry

Max
46.46%
Q3
14.65%
Median
2.66%
Q1
-7.70%
Min
-35.45%

AFRM has a negative Net Profit Margin of -2.07%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

GDS

30.83%

Information Technology Services Industry

Max
20.47%
Q3
11.62%
Median
5.97%
Q1
1.89%
Min
-4.62%

GDS’s Net Profit Margin of 30.83% is exceptionally high, placing it well beyond the typical range for the Information Technology Services industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

AFRM vs. GDS: A comparison of their Net Profit Margin against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Operating Profit Margin

AFRM

-2.53%

Software - Infrastructure Industry

Max
48.51%
Q3
16.56%
Median
4.48%
Q1
-6.43%
Min
-40.18%

AFRM has a negative Operating Profit Margin of -2.53%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

GDS

10.23%

Information Technology Services Industry

Max
29.42%
Q3
14.75%
Median
8.92%
Q1
2.62%
Min
-11.92%

GDS’s Operating Profit Margin of 10.23% is around the midpoint for the Information Technology Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

AFRM vs. GDS: A comparison of their Operating Margin against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Profitability at a Glance

SymbolAFRMGDS
Return on Equity (TTM)-2.22%16.65%
Return on Assets (TTM)-0.60%4.65%
Return on Invested Capital (TTM)-0.85%1.92%
Net Profit Margin (TTM)-2.07%30.83%
Operating Profit Margin (TTM)-2.53%10.23%
Gross Profit Margin (TTM)71.61%22.02%

Financial Strength

Current Ratio

AFRM

63.09

Software - Infrastructure Industry

Max
3.80
Q3
2.25
Median
1.51
Q1
1.10
Min
0.23

AFRM’s Current Ratio of 63.09 is exceptionally high, placing it well outside the typical range for the Software - Infrastructure industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

GDS

1.28

Information Technology Services Industry

Max
3.41
Q3
2.37
Median
1.58
Q1
1.20
Min
0.00

GDS’s Current Ratio of 1.28 aligns with the median group of the Information Technology Services industry, indicating that its short-term liquidity is in line with its sector peers.

AFRM vs. GDS: A comparison of their Current Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Debt-to-Equity Ratio

AFRM

2.56

Software - Infrastructure Industry

Max
2.56
Q3
1.12
Median
0.33
Q1
0.05
Min
0.00

AFRM’s leverage is in the upper quartile of the Software - Infrastructure industry, with a Debt-to-Equity Ratio of 2.56. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

GDS

1.89

Information Technology Services Industry

Max
2.63
Q3
1.16
Median
0.48
Q1
0.09
Min
0.01

GDS’s leverage is in the upper quartile of the Information Technology Services industry, with a Debt-to-Equity Ratio of 1.89. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

AFRM vs. GDS: A comparison of their D/E Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Interest Coverage Ratio

AFRM

-0.24

Software - Infrastructure Industry

Max
32.21
Q3
5.24
Median
0.95
Q1
-17.99
Min
-50.82

AFRM has a negative Interest Coverage Ratio of -0.24. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

GDS

0.74

Information Technology Services Industry

Max
17.52
Q3
10.04
Median
4.66
Q1
0.80
Min
-10.50

GDS’s Interest Coverage Ratio of 0.74 is a critical concern. A value below 1.0 means operating earnings are insufficient to cover interest expenses, indicating severe financial strain and high default risk.

AFRM vs. GDS: A comparison of their Interest Coverage against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Financial Strength at a Glance

SymbolAFRMGDS
Current Ratio (TTM)63.091.28
Quick Ratio (TTM)63.091.28
Debt-to-Equity Ratio (TTM)2.561.89
Debt-to-Asset Ratio (TTM)0.710.60
Net Debt-to-EBITDA Ratio (TTM)19.757.92
Interest Coverage Ratio (TTM)-0.240.74

Growth

The following charts compare key year-over-year (YoY) growth metrics for AFRM and GDS. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AFRM vs. GDS: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AFRM vs. GDS: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AFRM vs. GDS: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AFRM

0.00%

Software - Infrastructure Industry

Max
4.07%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

AFRM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

GDS

0.00%

Information Technology Services Industry

Max
16.57%
Q3
1.39%
Median
0.00%
Q1
0.00%
Min
0.00%

GDS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

AFRM vs. GDS: A comparison of their Dividend Yield against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Dividend Payout Ratio

AFRM

0.00%

Software - Infrastructure Industry

Max
48.68%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

AFRM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

GDS

0.00%

Information Technology Services Industry

Max
112.81%
Q3
20.98%
Median
0.00%
Q1
0.00%
Min
0.00%

GDS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

AFRM vs. GDS: A comparison of their Payout Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Dividend at a Glance

SymbolAFRMGDS
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio

AFRM

-360.51

Software - Infrastructure Industry

Max
107.77
Q3
54.40
Median
28.10
Q1
18.03
Min
5.32

AFRM has a negative P/E Ratio of -360.51. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.

GDS

35.44

Information Technology Services Industry

Max
49.12
Q3
36.91
Median
24.84
Q1
15.88
Min
1.55

GDS’s P/E Ratio of 35.44 is within the middle range for the Information Technology Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AFRM vs. GDS: A comparison of their P/E Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Forward P/E to Growth Ratio

AFRM

-6.16

Software - Infrastructure Industry

Max
8.12
Q3
3.94
Median
2.13
Q1
0.94
Min
0.01

AFRM has a negative Forward PEG Ratio of -6.16. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.

GDS

28.19

Information Technology Services Industry

Max
5.35
Q3
3.79
Median
2.23
Q1
1.19
Min
0.03

GDS’s Forward PEG Ratio of 28.19 is exceptionally high for the Information Technology Services industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

AFRM vs. GDS: A comparison of their Forward PEG Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Price-to-Sales Ratio

AFRM

7.42

Software - Infrastructure Industry

Max
18.25
Q3
9.05
Median
4.77
Q1
2.30
Min
0.11

AFRM’s P/S Ratio of 7.42 aligns with the market consensus for the Software - Infrastructure industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

GDS

4.26

Information Technology Services Industry

Max
8.15
Q3
4.17
Median
2.14
Q1
1.00
Min
0.10

GDS’s P/S Ratio of 4.26 is in the upper echelon for the Information Technology Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

AFRM vs. GDS: A comparison of their P/S Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Price-to-Book Ratio

AFRM

7.80

Software - Infrastructure Industry

Max
19.94
Q3
10.91
Median
6.33
Q1
2.95
Min
0.51

The P/B Ratio is often not a primary valuation metric for the Software - Infrastructure industry.

GDS

5.16

Information Technology Services Industry

Max
11.78
Q3
6.14
Median
3.23
Q1
1.97
Min
0.42

The P/B Ratio is often not a primary valuation metric for the Information Technology Services industry.

AFRM vs. GDS: A comparison of their P/B Ratio against their respective Software - Infrastructure and Information Technology Services industry benchmarks.

Valuation at a Glance

SymbolAFRMGDS
Price-to-Earnings Ratio (P/E, TTM)-360.5135.44
Forward PEG Ratio (TTM)-6.1628.19
Price-to-Sales Ratio (P/S, TTM)7.424.26
Price-to-Book Ratio (P/B, TTM)7.805.16
Price-to-Free Cash Flow Ratio (P/FCF, TTM)36.63-9.58
EV-to-EBITDA (TTM)93.0618.16
EV-to-Sales (TTM)9.417.55