AMAT vs. GDS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AMAT and GDS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AMAT’s market capitalization stands at 153.32 billion USD, while GDS’s is 140.20 billion USD, indicating their market valuations are broadly comparable.
AMAT’s beta of 1.66 points to significantly higher volatility compared to GDS (beta: 0.23), suggesting AMAT 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. AMAT, on the other hand, is a domestic entity.
| Symbol | AMAT | GDS |
|---|---|---|
| Company Name | Applied Materials, Inc. | GDS Holdings Limited |
| Country | US | CN |
| Sector | Technology | Technology |
| Industry | Semiconductors | Information Technology Services |
| CEO | Gary E. Dickerson | Wei Huang |
| Price | 191.05 USD | 33.98 USD |
| Market Cap | 153.32 billion USD | 140.20 billion USD |
| Beta | 1.66 | 0.23 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | March 17, 1980 | November 2, 2016 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of AMAT 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.
Profitability
Return on Equity
AMAT
35.84%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
In the upper quartile for the Semiconductors industry, AMAT’s Return on Equity of 35.84% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
Return on Invested Capital
AMAT
25.68%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
In the upper quartile for the Semiconductors industry, AMAT’s Return on Invested Capital of 25.68% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
Net Profit Margin
AMAT
24.06%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
A Net Profit Margin of 24.06% places AMAT in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.
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.
Operating Profit Margin
AMAT
29.66%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
An Operating Profit Margin of 29.66% places AMAT in the upper quartile for the Semiconductors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
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.
Profitability at a Glance
| Symbol | AMAT | GDS |
|---|---|---|
| Return on Equity (TTM) | 35.84% | 16.65% |
| Return on Assets (TTM) | 20.09% | 4.65% |
| Return on Invested Capital (TTM) | 25.68% | 1.92% |
| Net Profit Margin (TTM) | 24.06% | 30.83% |
| Operating Profit Margin (TTM) | 29.66% | 10.23% |
| Gross Profit Margin (TTM) | 48.14% | 22.02% |
Financial Strength
Current Ratio
AMAT
2.46
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
AMAT’s Current Ratio of 2.46 falls into the lower quartile for the Semiconductors industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
Debt-to-Equity Ratio
AMAT
0.33
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
AMAT’s Debt-to-Equity Ratio of 0.33 is typical for the Semiconductors industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
Interest Coverage Ratio
AMAT
31.92
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
AMAT’s Interest Coverage Ratio of 31.92 is in the upper quartile for the Semiconductors industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
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.
Financial Strength at a Glance
| Symbol | AMAT | GDS |
|---|---|---|
| Current Ratio (TTM) | 2.46 | 1.28 |
| Quick Ratio (TTM) | 1.76 | 1.28 |
| Debt-to-Equity Ratio (TTM) | 0.33 | 1.89 |
| Debt-to-Asset Ratio (TTM) | 0.19 | 0.60 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.01 | 7.92 |
| Interest Coverage Ratio (TTM) | 31.92 | 0.74 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AMAT and GDS. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AMAT
0.87%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AMAT’s Dividend Yield of 0.87% is consistent with its peers in the Semiconductors industry, providing a dividend return that is standard for its sector.
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.
Dividend Payout Ratio
AMAT
18.53%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AMAT’s Dividend Payout Ratio of 18.53% is within the typical range for the Semiconductors industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
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.
Dividend at a Glance
| Symbol | AMAT | GDS |
|---|---|---|
| Dividend Yield (TTM) | 0.87% | 0.00% |
| Dividend Payout Ratio (TTM) | 18.53% | 0.00% |
Valuation
Price-to-Earnings Ratio
AMAT
22.93
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
AMAT’s P/E Ratio of 22.93 is within the middle range for the Semiconductors industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
Forward P/E to Growth Ratio
AMAT
3.41
Semiconductors Industry
- Max
- 4.73
- Q3
- 2.80
- Median
- 1.11
- Q1
- 0.68
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.
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.
Price-to-Sales Ratio
AMAT
5.46
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
AMAT’s P/S Ratio of 5.46 aligns with the market consensus for the Semiconductors 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.
Price-to-Book Ratio
AMAT
8.17
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
AMAT’s P/B Ratio of 8.17 is in the upper tier for the Semiconductors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
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.
Valuation at a Glance
| Symbol | AMAT | GDS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 22.93 | 35.44 |
| Forward PEG Ratio (TTM) | 3.41 | 28.19 |
| Price-to-Sales Ratio (P/S, TTM) | 5.46 | 4.26 |
| Price-to-Book Ratio (P/B, TTM) | 8.17 | 5.16 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 25.83 | -9.58 |
| EV-to-EBITDA (TTM) | 17.57 | 18.16 |
| EV-to-Sales (TTM) | 5.46 | 7.55 |