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

Updated on August 21, 2025

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

Company Profile

EA 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	EA	GDS
Company Name	Electronic Arts Inc.	GDS Holdings Limited
Country	United States	China
GICS Sector	Communication Services	Information Technology
GICS Industry	Entertainment	IT Services
Market Capitalization	44.64 billion USD	6.88 billion USD
Exchange	NasdaqGS	NasdaqGM
Listing Date	September 20, 1989	November 2, 2016
Security Type	Common Stock	ADR

Historical Performance

This chart compares the performance of EA 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.

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

Historical Performance at a Glance

Symbol	EA	GDS
5-Day Price Return	9.62%	-1.84%
13-Week Price Return	19.52%	29.01%
26-Week Price Return	35.15%	42.30%
52-Week Price Return	22.27%	-19.97%
Month-to-Date Return	16.99%	-0.79%
Year-to-Date Return	21.94%	54.47%
10-Day Avg. Volume	3.73M	6.51M
3-Month Avg. Volume	3.12M	8.73M
3-Month Volatility	26.34%	60.94%
Beta	0.75	1.56

Profitability

Return on Equity (TTM)

EA

15.27%

Entertainment Industry

Max: 42.50%
Q3: 22.75%
Median: 12.88%
Q1: 7.15%
Min: -6.84%

EA’s Return on Equity of 15.27% is on par with the norm for the Entertainment 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.

EA vs. GDS: A comparison of their Return on Equity (TTM) against their respective Entertainment and IT Services industry benchmarks.

Net Profit Margin (TTM)

EA

13.94%

Entertainment Industry

Max: 45.25%
Q3: 23.93%
Median: 14.60%
Q1: 4.89%
Min: -22.94%

EA’s Net Profit Margin of 13.94% is aligned with the median group of its peers in the Entertainment 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.

EA vs. GDS: A comparison of their Net Profit Margin (TTM) against their respective Entertainment and IT Services industry benchmarks.

Operating Profit Margin (TTM)

EA

19.09%

Entertainment Industry

Max: 46.83%
Q3: 28.87%
Median: 15.26%
Q1: 8.95%
Min: -5.53%

EA’s Operating Profit Margin of 19.09% is around the midpoint for the Entertainment 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.

EA vs. GDS: A comparison of their Operating Profit Margin (TTM) against their respective Entertainment and IT Services industry benchmarks.

Profitability at a Glance

Symbol	EA	GDS
Return on Equity (TTM)	15.27%	19.12%
Return on Assets (TTM)	8.23%	5.88%
Net Profit Margin (TTM)	13.94%	41.75%
Operating Profit Margin (TTM)	19.09%	21.69%
Gross Profit Margin (TTM)	79.14%	21.12%

Financial Strength

Current Ratio (MRQ)

EA

0.84

Entertainment Industry

Max: 6.80
Q3: 3.77
Median: 1.87
Q1: 0.86
Min: 0.39

EA’s Current Ratio of 0.84 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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.

EA vs. GDS: A comparison of their Current Ratio (MRQ) against their respective Entertainment and IT Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

EA

0.31

Entertainment Industry

Max: 1.65
Q3: 0.71
Median: 0.14
Q1: 0.04
Min: 0.00

EA’s Debt-to-Equity Ratio of 0.31 is typical for the Entertainment 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.

EA vs. GDS: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Entertainment and IT Services industry benchmarks.

Interest Coverage Ratio (TTM)

EA

190.43

Entertainment Industry

Max: 62.11
Q3: 31.19
Median: 7.50
Q1: 2.02
Min: -6.33

With an Interest Coverage Ratio of 190.43, EA demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.

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.

EA vs. GDS: A comparison of their Interest Coverage Ratio (TTM) against their respective Entertainment and IT Services industry benchmarks.

Financial Strength at a Glance

Symbol	EA	GDS
Current Ratio (MRQ)	0.84	1.47
Quick Ratio (MRQ)	0.84	1.29
Debt-to-Equity Ratio (MRQ)	0.31	1.75
Interest Coverage Ratio (TTM)	190.43	0.66

Growth

Revenue Growth

EA vs. GDS: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

EA vs. GDS: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

EA

0.44%

Entertainment Industry

Max: 2.54%
Q3: 1.29%
Median: 0.61%
Q1: 0.00%
Min: 0.00%

EA’s Dividend Yield of 0.44% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.

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.

EA vs. GDS: A comparison of their Dividend Yield (TTM) against their respective Entertainment and IT Services industry benchmarks.

Dividend Payout Ratio (TTM)

EA

18.91%

Entertainment Industry

Max: 82.30%
Q3: 45.76%
Median: 29.16%
Q1: 0.00%
Min: 0.00%

EA’s Dividend Payout Ratio of 18.91% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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.

EA vs. GDS: A comparison of their Dividend Payout Ratio (TTM) against their respective Entertainment and IT Services industry benchmarks.

Dividend at a Glance

Symbol	EA	GDS
Dividend Yield (TTM)	0.44%	0.00%
Dividend Payout Ratio (TTM)	18.91%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

EA

43.10

Entertainment Industry

Max: 53.51
Q3: 45.31
Median: 33.16
Q1: 18.21
Min: 3.89

EA’s P/E Ratio of 43.10 is within the middle range for the Entertainment 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

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.

EA vs. GDS: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Entertainment and IT Services industry benchmarks.

Price-to-Sales Ratio (TTM)

EA

6.01

Entertainment Industry

Max: 12.81
Q3: 7.20
Median: 4.68
Q1: 3.32
Min: 0.79

EA’s P/S Ratio of 6.01 aligns with the market consensus for the Entertainment 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.

EA vs. GDS: A comparison of their Price-to-Sales Ratio (TTM) against their respective Entertainment and IT Services industry benchmarks.

Price-to-Book Ratio (MRQ)

EA

6.60

Entertainment Industry

Max: 17.11
Q3: 8.38
Median: 5.24
Q1: 2.18
Min: 0.67

EA’s P/B Ratio of 6.60 is within the conventional range for the Entertainment 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.

EA vs. GDS: A comparison of their Price-to-Book Ratio (MRQ) against their respective Entertainment and IT Services industry benchmarks.

Valuation at a Glance

Symbol	EA	GDS
Price-to-Earnings Ratio (TTM)	43.10	11.54
Price-to-Sales Ratio (TTM)	6.01	4.82
Price-to-Book Ratio (MRQ)	6.60	1.40
Price-to-Free Cash Flow Ratio (TTM)	24.17	--