CIEN vs. GDS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CIEN and GDS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
CIEN is a standard domestic listing, while GDS trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
| Symbol | CIEN | GDS |
|---|---|---|
| Company Name | Ciena Corporation | GDS Holdings Limited |
| Country | United States | China |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Communications Equipment | IT Services |
| Market Capitalization | 13.38 billion USD | 6.88 billion USD |
| Exchange | NYSE | NasdaqGM |
| Listing Date | February 7, 1997 | November 2, 2016 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of CIEN 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.
Historical Performance at a Glance
| Symbol | CIEN | GDS |
|---|---|---|
| 5-Day Price Return | -0.55% | -1.84% |
| 13-Week Price Return | 19.81% | 29.01% |
| 26-Week Price Return | 1.65% | 42.30% |
| 52-Week Price Return | 95.18% | -19.97% |
| Month-to-Date Return | 1.96% | -0.79% |
| Year-to-Date Return | 11.61% | 54.47% |
| 10-Day Avg. Volume | 1.61M | 6.51M |
| 3-Month Avg. Volume | 2.05M | 8.73M |
| 3-Month Volatility | 40.51% | 60.94% |
| Beta | 1.07 | 1.56 |
Profitability
Return on Equity (TTM)
CIEN
3.72%
Communications Equipment Industry
- Max
- 32.05%
- Q3
- 19.58%
- Median
- 11.77%
- Q1
- 2.23%
- Min
- -11.93%
CIEN’s Return on Equity of 3.72% is on par with the norm for the Communications Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
GDS
19.12%
IT Services Industry
- Max
- 29.51%
- Q3
- 16.98%
- Median
- 13.47%
- Q1
- 7.93%
- Min
- -3.97%
In the upper quartile for the IT Services industry, GDS’s Return on Equity of 19.12% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
CIEN
2.46%
Communications Equipment Industry
- Max
- 23.65%
- Q3
- 14.32%
- Median
- 5.31%
- Q1
- 1.45%
- Min
- -12.72%
CIEN’s Net Profit Margin of 2.46% is aligned with the median group of its peers in the Communications Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.
GDS
41.75%
IT Services Industry
- Max
- 19.82%
- Q3
- 11.49%
- Median
- 6.67%
- Q1
- 3.61%
- Min
- -4.62%
GDS’s Net Profit Margin of 41.75% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
CIEN
4.66%
Communications Equipment Industry
- Max
- 42.27%
- Q3
- 18.90%
- Median
- 6.21%
- Q1
- 2.97%
- Min
- -20.72%
CIEN’s Operating Profit Margin of 4.66% is around the midpoint for the Communications Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
GDS
21.69%
IT Services Industry
- Max
- 21.69%
- Q3
- 14.50%
- Median
- 10.06%
- Q1
- 6.98%
- Min
- 0.06%
An Operating Profit Margin of 21.69% places GDS in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | CIEN | GDS |
|---|---|---|
| Return on Equity (TTM) | 3.72% | 19.12% |
| Return on Assets (TTM) | 1.87% | 5.88% |
| Net Profit Margin (TTM) | 2.46% | 41.75% |
| Operating Profit Margin (TTM) | 4.66% | 21.69% |
| Gross Profit Margin (TTM) | 41.94% | 21.12% |
Financial Strength
Current Ratio (MRQ)
CIEN
3.40
Communications Equipment Industry
- Max
- 1.72
- Q3
- 1.72
- Median
- 1.46
- Q1
- 1.18
- Min
- 0.93
CIEN’s Current Ratio of 3.40 is exceptionally high, placing it well outside the typical range for the Communications Equipment 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
1.47
IT Services Industry
- Max
- 2.42
- Q3
- 1.81
- Median
- 1.47
- Q1
- 1.09
- Min
- 0.44
GDS’s Current Ratio of 1.47 aligns with the median group of the IT Services industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
CIEN
0.55
Communications Equipment Industry
- Max
- 1.55
- Q3
- 0.92
- Median
- 0.55
- Q1
- 0.30
- Min
- 0.00
CIEN’s Debt-to-Equity Ratio of 0.55 is typical for the Communications Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
GDS
1.75
IT Services Industry
- Max
- 2.33
- Q3
- 1.17
- Median
- 0.54
- Q1
- 0.15
- Min
- 0.00
GDS’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 1.75. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
CIEN
3.65
Communications Equipment Industry
- Max
- 181.73
- Q3
- 113.63
- Median
- 7.59
- Q1
- 3.82
- Min
- -5.39
In the lower quartile for the Communications Equipment industry, CIEN’s Interest Coverage Ratio of 3.65 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
GDS
0.66
IT Services Industry
- Max
- 144.50
- Q3
- 84.49
- Median
- 13.76
- Q1
- 2.59
- Min
- -28.13
GDS’s Interest Coverage Ratio of 0.66 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 | CIEN | GDS |
|---|---|---|
| Current Ratio (MRQ) | 3.40 | 1.47 |
| Quick Ratio (MRQ) | 2.27 | 1.29 |
| Debt-to-Equity Ratio (MRQ) | 0.55 | 1.75 |
| Interest Coverage Ratio (TTM) | 3.65 | 0.66 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CIEN
0.00%
Communications Equipment Industry
- Max
- 3.88%
- Q3
- 2.75%
- Median
- 0.93%
- Q1
- 0.00%
- Min
- 0.00%
CIEN 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%
IT Services Industry
- Max
- 2.80%
- Q3
- 1.74%
- Median
- 0.62%
- 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 (TTM)
CIEN
0.00%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 55.91%
- Median
- 28.42%
- Q1
- 0.00%
- Min
- 0.00%
CIEN 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%
IT Services Industry
- Max
- 147.75%
- Q3
- 63.58%
- Median
- 24.63%
- 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 | CIEN | GDS |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
CIEN
131.48
Communications Equipment Industry
- Max
- 57.30
- Q3
- 47.92
- Median
- 27.50
- Q1
- 17.89
- Min
- 13.89
At 131.48, CIEN’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Communications Equipment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
GDS
11.54
IT Services Industry
- Max
- 41.55
- Q3
- 31.54
- Median
- 23.25
- Q1
- 18.12
- Min
- 6.57
In the lower quartile for the IT Services industry, GDS’s P/E Ratio of 11.54 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
CIEN
3.23
Communications Equipment Industry
- Max
- 11.03
- Q3
- 5.53
- Median
- 2.20
- Q1
- 0.99
- Min
- 0.40
CIEN’s P/S Ratio of 3.23 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
GDS
4.82
IT Services Industry
- Max
- 6.61
- Q3
- 4.37
- Median
- 2.02
- Q1
- 1.20
- Min
- 0.19
GDS’s P/S Ratio of 4.82 is in the upper echelon for the IT 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 (MRQ)
CIEN
3.73
Communications Equipment Industry
- Max
- 9.66
- Q3
- 5.60
- Median
- 3.73
- Q1
- 2.67
- Min
- 0.30
CIEN’s P/B Ratio of 3.73 is within the conventional range for the Communications Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
GDS
1.40
IT Services Industry
- Max
- 11.19
- Q3
- 6.38
- Median
- 3.47
- Q1
- 2.31
- Min
- 0.96
GDS’s P/B Ratio of 1.40 is in the lower quartile for the IT Services industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | CIEN | GDS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 131.48 | 11.54 |
| Price-to-Sales Ratio (TTM) | 3.23 | 4.82 |
| Price-to-Book Ratio (MRQ) | 3.73 | 1.40 |
| Price-to-Free Cash Flow Ratio (TTM) | 29.26 | -- |