GDS vs. GRMN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GDS and GRMN, 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, GRMN is a standard domestic listing.
| Symbol | GDS | GRMN |
|---|---|---|
| Company Name | GDS Holdings Limited | Garmin Ltd. |
| Country | China | Switzerland |
| GICS Sector | Information Technology | Consumer Discretionary |
| GICS Industry | IT Services | Household Durables |
| Market Capitalization | 6.88 billion USD | 45.54 billion USD |
| Exchange | NasdaqGM | NYSE |
| Listing Date | November 2, 2016 | December 8, 2000 |
| Security Type | ADR | Common Stock |
Historical Performance
This chart compares the performance of GDS and GRMN 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 | GRMN |
|---|---|---|
| 5-Day Price Return | -1.84% | 3.33% |
| 13-Week Price Return | 29.01% | 19.50% |
| 26-Week Price Return | 42.30% | 7.64% |
| 52-Week Price Return | -19.97% | 40.35% |
| Month-to-Date Return | -0.79% | 8.15% |
| Year-to-Date Return | 54.47% | 14.70% |
| 10-Day Avg. Volume | 6.51M | 0.87M |
| 3-Month Avg. Volume | 8.73M | 0.92M |
| 3-Month Volatility | 60.94% | 25.11% |
| Beta | 1.56 | 1.01 |
Profitability
Return on Equity (TTM)
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.
GRMN
19.82%
Household Durables Industry
- Max
- 26.99%
- Q3
- 17.28%
- Median
- 12.66%
- Q1
- 7.34%
- Min
- 0.07%
In the upper quartile for the Household Durables industry, GRMN’s Return on Equity of 19.82% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
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.
GRMN
23.21%
Household Durables Industry
- Max
- 15.50%
- Q3
- 8.99%
- Median
- 6.57%
- Q1
- 4.33%
- Min
- -0.49%
GRMN’s Net Profit Margin of 23.21% is exceptionally high, placing it well beyond the typical range for the Household Durables industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
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.
GRMN
26.02%
Household Durables Industry
- Max
- 20.22%
- Q3
- 12.29%
- Median
- 9.54%
- Q1
- 6.30%
- Min
- -1.92%
GRMN’s Operating Profit Margin of 26.02% is exceptionally high, placing it well above the typical range for the Household Durables industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | GDS | GRMN |
|---|---|---|
| Return on Equity (TTM) | 19.12% | 19.82% |
| Return on Assets (TTM) | 5.88% | 16.05% |
| Net Profit Margin (TTM) | 41.75% | 23.21% |
| Operating Profit Margin (TTM) | 21.69% | 26.02% |
| Gross Profit Margin (TTM) | 21.12% | 58.94% |
Financial Strength
Current Ratio (MRQ)
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.
GRMN
3.01
Household Durables Industry
- Max
- 9.23
- Q3
- 4.50
- Median
- 2.35
- Q1
- 1.29
- Min
- 0.70
GRMN’s Current Ratio of 3.01 aligns with the median group of the Household Durables industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
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.
GRMN
0.00
Household Durables Industry
- Max
- 1.84
- Q3
- 0.90
- Median
- 0.34
- Q1
- 0.19
- Min
- 0.00
Falling into the lower quartile for the Household Durables industry, GRMN’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
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.
GRMN
73.26
Household Durables Industry
- Max
- 140.40
- Q3
- 77.14
- Median
- 24.53
- Q1
- 5.69
- Min
- -17.01
GRMN’s Interest Coverage Ratio of 73.26 is positioned comfortably within the norm for the Household Durables industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | GDS | GRMN |
|---|---|---|
| Current Ratio (MRQ) | 1.47 | 3.01 |
| Quick Ratio (MRQ) | 1.29 | 1.88 |
| Debt-to-Equity Ratio (MRQ) | 1.75 | 0.00 |
| Interest Coverage Ratio (TTM) | 0.66 | 73.26 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
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.
GRMN
1.35%
Household Durables Industry
- Max
- 8.95%
- Q3
- 4.19%
- Median
- 1.88%
- Q1
- 0.03%
- Min
- 0.00%
GRMN’s Dividend Yield of 1.35% is consistent with its peers in the Household Durables industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
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.
GRMN
38.63%
Household Durables Industry
- Max
- 125.12%
- Q3
- 62.43%
- Median
- 39.18%
- Q1
- 5.55%
- Min
- 0.00%
GRMN’s Dividend Payout Ratio of 38.63% is within the typical range for the Household Durables industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | GDS | GRMN |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.35% |
| Dividend Payout Ratio (TTM) | 0.00% | 38.63% |
Valuation
Price-to-Earnings Ratio (TTM)
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.
GRMN
28.70
Household Durables Industry
- Max
- 29.75
- Q3
- 18.88
- Median
- 13.25
- Q1
- 9.26
- Min
- 6.32
A P/E Ratio of 28.70 places GRMN in the upper quartile for the Household Durables industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
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.
GRMN
6.66
Household Durables Industry
- Max
- 2.12
- Q3
- 1.21
- Median
- 0.83
- Q1
- 0.51
- Min
- 0.18
With a P/S Ratio of 6.66, GRMN trades at a valuation that eclipses even the highest in the Household Durables industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
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.
GRMN
4.95
Household Durables Industry
- Max
- 4.21
- Q3
- 2.29
- Median
- 1.34
- Q1
- 0.98
- Min
- 0.59
At 4.95, GRMN’s P/B Ratio is at an extreme premium to the Household Durables industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | GDS | GRMN |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 11.54 | 28.70 |
| Price-to-Sales Ratio (TTM) | 4.82 | 6.66 |
| Price-to-Book Ratio (MRQ) | 1.40 | 4.95 |
| Price-to-Free Cash Flow Ratio (TTM) | -- | 39.95 |