EA vs. GDS: A Head-to-Head Stock Comparison
Updated onHere’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 | 50.16 billion USD | 5.75 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.
Historical Performance at a Glance
| Symbol | EA | GDS |
|---|---|---|
| 5-Day Price Return | -0.17% | -9.57% |
| 13-Week Price Return | 15.11% | -9.85% |
| 26-Week Price Return | 34.89% | 7.99% |
| 52-Week Price Return | 23.56% | -19.97% |
| Month-to-Date Return | 0.50% | -13.70% |
| Year-to-Date Return | 37.43% | 29.30% |
| 10-Day Avg. Volume | 1.89M | 5.28M |
| 3-Month Avg. Volume | 3.31M | 10.11M |
| 3-Month Volatility | 33.78% | 59.37% |
| Beta | 0.74 | 2.45 |
Profitability
Return on Equity (TTM)
EA
13.68%
Entertainment Industry
- Max
- 41.86%
- Q3
- 22.17%
- Median
- 13.67%
- Q1
- 4.55%
- Min
- -17.95%
EA’s Return on Equity of 13.68% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.
GDS
19.17%
IT Services Industry
- Max
- 37.08%
- Q3
- 19.28%
- Median
- 14.70%
- Q1
- 6.70%
- Min
- -8.16%
GDS’s Return on Equity of 19.17% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
EA
12.14%
Entertainment Industry
- Max
- 45.33%
- Q3
- 29.05%
- Median
- 15.14%
- Q1
- 4.44%
- Min
- -21.70%
EA’s Net Profit Margin of 12.14% 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
42.87%
IT Services Industry
- Max
- 17.01%
- Q3
- 11.02%
- Median
- 6.91%
- Q1
- 3.07%
- Min
- -5.13%
GDS’s Net Profit Margin of 42.87% 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)
EA
17.06%
Entertainment Industry
- Max
- 43.42%
- Q3
- 28.90%
- Median
- 18.77%
- Q1
- 9.11%
- Min
- -4.88%
EA’s Operating Profit Margin of 17.06% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.
GDS
22.44%
IT Services Industry
- Max
- 23.01%
- Q3
- 15.32%
- Median
- 9.57%
- Q1
- 4.91%
- Min
- -9.58%
An Operating Profit Margin of 22.44% 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 | EA | GDS |
|---|---|---|
| Return on Equity (TTM) | 13.68% | 19.17% |
| Return on Assets (TTM) | 7.17% | 6.08% |
| Net Profit Margin (TTM) | 12.14% | 42.87% |
| Operating Profit Margin (TTM) | 17.06% | 22.44% |
| Gross Profit Margin (TTM) | 78.79% | 21.45% |
Financial Strength
Current Ratio (MRQ)
EA
0.84
Entertainment Industry
- Max
- 6.76
- Q3
- 4.06
- Median
- 1.58
- Q1
- 0.87
- Min
- 0.38
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
2.00
IT Services Industry
- Max
- 3.02
- Q3
- 1.91
- Median
- 1.36
- Q1
- 1.02
- Min
- 0.49
GDS’s Current Ratio of 2.00 is in the upper quartile for the IT Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
EA
0.31
Entertainment Industry
- Max
- 1.54
- Q3
- 0.80
- Median
- 0.15
- Q1
- 0.01
- 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
1.82
IT Services Industry
- Max
- 2.55
- Q3
- 1.30
- Median
- 0.55
- Q1
- 0.14
- Min
- 0.00
GDS’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 1.82. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
EA
190.43
Entertainment Industry
- Max
- 62.11
- Q3
- 35.59
- Median
- 7.06
- Q1
- 1.13
- Min
- -44.74
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
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 1.68
- Min
- -28.15
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 | EA | GDS |
|---|---|---|
| Current Ratio (MRQ) | 0.84 | 2.00 |
| Quick Ratio (MRQ) | 0.84 | 1.93 |
| Debt-to-Equity Ratio (MRQ) | 0.31 | 1.82 |
| Interest Coverage Ratio (TTM) | 190.43 | 0.66 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
EA
0.39%
Entertainment Industry
- Max
- 2.71%
- Q3
- 1.23%
- Median
- 0.60%
- Q1
- 0.00%
- Min
- 0.00%
EA’s Dividend Yield of 0.39% 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
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- 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)
EA
21.92%
Entertainment Industry
- Max
- 82.30%
- Q3
- 37.50%
- Median
- 24.18%
- Q1
- 0.00%
- Min
- 0.00%
EA’s Dividend Payout Ratio of 21.92% 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
- 93.78%
- Q3
- 63.22%
- Median
- 24.64%
- 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 | EA | GDS |
|---|---|---|
| Dividend Yield (TTM) | 0.39% | 0.00% |
| Dividend Payout Ratio (TTM) | 21.92% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
EA
56.66
Entertainment Industry
- Max
- 80.06
- Q3
- 53.00
- Median
- 28.44
- Q1
- 18.00
- Min
- 2.61
A P/E Ratio of 56.66 places EA in the upper quartile for the Entertainment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
GDS
9.32
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
In the lower quartile for the IT Services industry, GDS’s P/E Ratio of 9.32 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
EA
6.88
Entertainment Industry
- Max
- 10.86
- Q3
- 6.98
- Median
- 4.25
- Q1
- 2.56
- Min
- 0.51
EA’s P/S Ratio of 6.88 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
3.99
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
GDS’s P/S Ratio of 3.99 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
EA
8.38
Entertainment Industry
- Max
- 19.63
- Q3
- 10.35
- Median
- 5.18
- Q1
- 2.07
- Min
- 0.59
EA’s P/B Ratio of 8.38 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
1.61
IT Services Industry
- Max
- 9.42
- Q3
- 5.79
- Median
- 3.70
- Q1
- 2.30
- Min
- 0.79
GDS’s P/B Ratio of 1.61 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 | EA | GDS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 56.66 | 9.32 |
| Price-to-Sales Ratio (TTM) | 6.88 | 3.99 |
| Price-to-Book Ratio (MRQ) | 8.38 | 1.61 |
| Price-to-Free Cash Flow Ratio (TTM) | 29.36 | -- |