GDS vs. GEN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GDS and GEN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
GDS trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, GEN is a standard domestic listing.
| Symbol | GDS | GEN |
|---|---|---|
| Company Name | GDS Holdings Limited | Gen Digital Inc. |
| Country | China | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | Software |
| Market Capitalization | 5.75 billion USD | 16.39 billion USD |
| Exchange | NasdaqGM | NasdaqGS |
| Listing Date | November 2, 2016 | June 23, 1989 |
| Security Type | ADR | Common Stock |
Historical Performance
This chart compares the performance of GDS and GEN 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 | GDS | GEN |
|---|---|---|
| 5-Day Price Return | -9.57% | -3.68% |
| 13-Week Price Return | -9.85% | -16.67% |
| 26-Week Price Return | 7.99% | -8.60% |
| 52-Week Price Return | -19.97% | -12.98% |
| Month-to-Date Return | -13.70% | -0.83% |
| Year-to-Date Return | 29.30% | -4.53% |
| 10-Day Avg. Volume | 5.28M | 6.22M |
| 3-Month Avg. Volume | 10.11M | 3.88M |
| 3-Month Volatility | 59.37% | 19.07% |
| Beta | 2.45 | 1.11 |
Profitability
Return on Equity (TTM)
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.
GEN
26.88%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
In the upper quartile for the Software industry, GEN’s Return on Equity of 26.88% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
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.
GEN
12.74%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- Min
- -41.00%
GEN’s Net Profit Margin of 12.74% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
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.
GEN
36.78%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
An Operating Profit Margin of 36.78% places GEN in the upper quartile for the Software 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 | GDS | GEN |
|---|---|---|
| Return on Equity (TTM) | 19.17% | 26.88% |
| Return on Assets (TTM) | 6.08% | 3.81% |
| Net Profit Margin (TTM) | 42.87% | 12.74% |
| Operating Profit Margin (TTM) | 22.44% | 36.78% |
| Gross Profit Margin (TTM) | 21.45% | 79.32% |
Financial Strength
Current Ratio (MRQ)
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.
GEN
0.50
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- Q1
- 1.03
- Min
- 0.25
GEN’s Current Ratio of 0.50 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
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.
GEN
3.75
Software Industry
- Max
- 2.04
- Q3
- 0.86
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
With a Debt-to-Equity Ratio of 3.75, GEN operates with exceptionally high leverage compared to the Software industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
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.
GEN
2.88
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- Min
- -71.23
GEN’s Interest Coverage Ratio of 2.88 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | GDS | GEN |
|---|---|---|
| Current Ratio (MRQ) | 2.00 | 0.50 |
| Quick Ratio (MRQ) | 1.93 | 0.50 |
| Debt-to-Equity Ratio (MRQ) | 1.82 | 3.75 |
| Interest Coverage Ratio (TTM) | 0.66 | 2.88 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
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.
GEN
1.93%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
GEN’s Dividend Yield of 1.93% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
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.
GEN
54.91%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 54.91%, GEN’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
Dividend at a Glance
| Symbol | GDS | GEN |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.93% |
| Dividend Payout Ratio (TTM) | 0.00% | 54.91% |
Valuation
Price-to-Earnings Ratio (TTM)
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.
GEN
28.42
Software Industry
- Max
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
GEN’s P/E Ratio of 28.42 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
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.
GEN
3.62
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
In the lower quartile for the Software industry, GEN’s P/S Ratio of 3.62 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
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.
GEN
8.00
Software Industry
- Max
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
GEN’s P/B Ratio of 8.00 is within the conventional range for the Software 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.
Valuation at a Glance
| Symbol | GDS | GEN |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 9.32 | 28.42 |
| Price-to-Sales Ratio (TTM) | 3.99 | 3.62 |
| Price-to-Book Ratio (MRQ) | 1.61 | 8.00 |
| Price-to-Free Cash Flow Ratio (TTM) | -- | 12.46 |