GDS vs. HPQ: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GDS and HPQ, 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, HPQ is a standard domestic listing.
| Symbol | GDS | HPQ |
|---|---|---|
| Company Name | GDS Holdings Limited | HP Inc. |
| Country | China | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | Technology Hardware, Storage & Peripherals |
| Market Capitalization | 7.79 billion USD | 24.90 billion USD |
| Exchange | NasdaqGM | NYSE |
| Listing Date | November 2, 2016 | January 2, 1962 |
| Security Type | ADR | Common Stock |
Historical Performance
This chart compares the performance of GDS and HPQ 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 | HPQ |
|---|---|---|
| 5-Day Price Return | 0.71% | -0.93% |
| 13-Week Price Return | 23.16% | 2.46% |
| 26-Week Price Return | 53.06% | -3.79% |
| 52-Week Price Return | -19.97% | -24.28% |
| Month-to-Date Return | -0.90% | -2.17% |
| Year-to-Date Return | 74.21% | -18.36% |
| 10-Day Avg. Volume | 12.52M | 9.62M |
| 3-Month Avg. Volume | 10.14M | 9.20M |
| 3-Month Volatility | 62.59% | 26.39% |
| Beta | 1.88 | 1.24 |
Profitability
Return on Equity (TTM)
GDS
19.17%
IT Services Industry
- Max
- 32.78%
- Q3
- 19.28%
- Median
- 13.86%
- Q1
- 5.50%
- Min
- -10.00%
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.
HPQ
16.85%
Technology Hardware, Storage & Peripherals Industry
- Max
- 56.93%
- Q3
- 27.52%
- Median
- 9.18%
- Q1
- 5.14%
- Min
- -1.04%
HPQ’s Return on Equity of 16.85% is on par with the norm for the Technology Hardware, Storage & Peripherals industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
GDS
42.87%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
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.
HPQ
4.83%
Technology Hardware, Storage & Peripherals Industry
- Max
- 16.15%
- Q3
- 7.95%
- Median
- 4.80%
- Q1
- 2.20%
- Min
- -0.29%
HPQ’s Net Profit Margin of 4.83% is aligned with the median group of its peers in the Technology Hardware, Storage & Peripherals 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
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
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.
HPQ
5.85%
Technology Hardware, Storage & Peripherals Industry
- Max
- 20.70%
- Q3
- 10.74%
- Median
- 6.27%
- Q1
- 4.07%
- Min
- 1.97%
HPQ’s Operating Profit Margin of 5.85% is around the midpoint for the Technology Hardware, Storage & Peripherals industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | GDS | HPQ |
|---|---|---|
| Return on Equity (TTM) | 19.17% | 16.85% |
| Return on Assets (TTM) | 6.08% | 6.71% |
| Net Profit Margin (TTM) | 42.87% | 4.83% |
| Operating Profit Margin (TTM) | 22.44% | 5.85% |
| Gross Profit Margin (TTM) | 21.45% | 20.89% |
Financial Strength
Current Ratio (MRQ)
GDS
2.00
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
GDS’s Current Ratio of 2.00 aligns with the median group of the IT Services industry, indicating that its short-term liquidity is in line with its sector peers.
HPQ
0.74
Technology Hardware, Storage & Peripherals Industry
- Max
- 3.37
- Q3
- 2.04
- Median
- 1.41
- Q1
- 0.98
- Min
- 0.11
HPQ’s Current Ratio of 0.74 falls into the lower quartile for the Technology Hardware, Storage & Peripherals 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
- 3.11
- Q3
- 1.55
- Median
- 0.55
- Q1
- 0.17
- 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.
HPQ
0.32
Technology Hardware, Storage & Peripherals Industry
- Max
- 1.54
- Q3
- 0.85
- Median
- 0.32
- Q1
- 0.11
- Min
- 0.00
HPQ’s Debt-to-Equity Ratio of 0.32 is typical for the Technology Hardware, Storage & Peripherals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
GDS
0.66
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 0.77
- 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.
HPQ
8.25
Technology Hardware, Storage & Peripherals Industry
- Max
- 143.63
- Q3
- 76.01
- Median
- 19.47
- Q1
- 5.91
- Min
- -23.93
HPQ’s Interest Coverage Ratio of 8.25 is positioned comfortably within the norm for the Technology Hardware, Storage & Peripherals industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | GDS | HPQ |
|---|---|---|
| Current Ratio (MRQ) | 2.00 | 0.74 |
| Quick Ratio (MRQ) | 1.93 | 0.44 |
| Debt-to-Equity Ratio (MRQ) | 1.82 | 0.32 |
| Interest Coverage Ratio (TTM) | 0.66 | 8.25 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
GDS
0.00%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- 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.
HPQ
4.33%
Technology Hardware, Storage & Peripherals Industry
- Max
- 4.33%
- Q3
- 3.29%
- Median
- 1.76%
- Q1
- 0.00%
- Min
- 0.00%
HPQ’s Dividend Yield of 4.33% is exceptionally high, placing it well above the typical range for the Technology Hardware, Storage & Peripherals 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
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- 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.
HPQ
40.95%
Technology Hardware, Storage & Peripherals Industry
- Max
- 142.87%
- Q3
- 77.17%
- Median
- 40.90%
- Q1
- 3.87%
- Min
- 0.00%
HPQ’s Dividend Payout Ratio of 40.95% is within the typical range for the Technology Hardware, Storage & Peripherals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | GDS | HPQ |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 4.33% |
| Dividend Payout Ratio (TTM) | 0.00% | 40.95% |
Valuation
Price-to-Earnings Ratio (TTM)
GDS
12.94
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
In the lower quartile for the IT Services industry, GDS’s P/E Ratio of 12.94 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
HPQ
9.45
Technology Hardware, Storage & Peripherals Industry
- Max
- 43.10
- Q3
- 28.67
- Median
- 19.23
- Q1
- 15.53
- Min
- 9.46
HPQ’s P/E Ratio of 9.45 is below the typical range for the Technology Hardware, Storage & Peripherals industry. This may indicate that the stock is potentially undervalued, or it could reflect market concerns about the company’s future prospects.
Price-to-Sales Ratio (TTM)
GDS
5.55
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
GDS’s P/S Ratio of 5.55 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.
HPQ
0.46
Technology Hardware, Storage & Peripherals Industry
- Max
- 5.63
- Q3
- 3.18
- Median
- 1.10
- Q1
- 0.49
- Min
- 0.04
In the lower quartile for the Technology Hardware, Storage & Peripherals industry, HPQ’s P/S Ratio of 0.46 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
1.62
IT Services Industry
- Max
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
GDS’s P/B Ratio of 1.62 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.
HPQ
0.90
Technology Hardware, Storage & Peripherals Industry
- Max
- 13.94
- Q3
- 6.87
- Median
- 1.88
- Q1
- 0.94
- Min
- 0.32
HPQ’s P/B Ratio of 0.90 is in the lower quartile for the Technology Hardware, Storage & Peripherals 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 | GDS | HPQ |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 12.94 | 9.45 |
| Price-to-Sales Ratio (TTM) | 5.55 | 0.46 |
| Price-to-Book Ratio (MRQ) | 1.62 | 0.90 |
| Price-to-Free Cash Flow Ratio (TTM) | -- | 8.35 |