GDS vs. IBM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GDS and IBM, 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, IBM is a standard domestic listing.
| Symbol | GDS | IBM |
|---|---|---|
| Company Name | GDS Holdings Limited | International Business Machines Corporation |
| Country | China | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | IT Services |
| Market Capitalization | 6.88 billion USD | 223.63 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 IBM 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 | IBM |
|---|---|---|
| 5-Day Price Return | -1.84% | -4.03% |
| 13-Week Price Return | 29.01% | -5.37% |
| 26-Week Price Return | 42.30% | -5.28% |
| 52-Week Price Return | -19.97% | 26.70% |
| Month-to-Date Return | -0.79% | -5.17% |
| Year-to-Date Return | 54.47% | 9.21% |
| 10-Day Avg. Volume | 6.51M | 6.81M |
| 3-Month Avg. Volume | 8.73M | 4.78M |
| 3-Month Volatility | 60.94% | 25.75% |
| Beta | 1.56 | 0.69 |
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.
IBM
21.99%
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, IBM’s Return on Equity of 21.99% 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.
IBM
9.11%
IT Services Industry
- Max
- 19.82%
- Q3
- 11.49%
- Median
- 6.67%
- Q1
- 3.61%
- Min
- -4.62%
IBM’s Net Profit Margin of 9.11% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
IBM
9.77%
IT Services Industry
- Max
- 21.69%
- Q3
- 14.50%
- Median
- 10.06%
- Q1
- 6.98%
- Min
- 0.06%
IBM’s Operating Profit Margin of 9.77% is around the midpoint for the IT Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | GDS | IBM |
|---|---|---|
| Return on Equity (TTM) | 19.12% | 21.99% |
| Return on Assets (TTM) | 5.88% | 4.12% |
| Net Profit Margin (TTM) | 41.75% | 9.11% |
| Operating Profit Margin (TTM) | 21.69% | 9.77% |
| Gross Profit Margin (TTM) | 21.12% | 57.57% |
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.
IBM
0.91
IT Services Industry
- Max
- 2.42
- Q3
- 1.81
- Median
- 1.47
- Q1
- 1.09
- Min
- 0.44
IBM’s Current Ratio of 0.91 falls into the lower quartile for the IT Services 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
1.75
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.
IBM
2.33
IT Services Industry
- Max
- 2.33
- Q3
- 1.17
- Median
- 0.54
- Q1
- 0.15
- Min
- 0.00
IBM’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 2.33. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
IBM
45.57
IT Services Industry
- Max
- 144.50
- Q3
- 84.49
- Median
- 13.76
- Q1
- 2.59
- Min
- -28.13
IBM’s Interest Coverage Ratio of 45.57 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | GDS | IBM |
|---|---|---|
| Current Ratio (MRQ) | 1.47 | 0.91 |
| Quick Ratio (MRQ) | 1.29 | 0.80 |
| Debt-to-Equity Ratio (MRQ) | 1.75 | 2.33 |
| Interest Coverage Ratio (TTM) | 0.66 | 45.57 |
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.
IBM
2.77%
IT Services Industry
- Max
- 2.80%
- Q3
- 1.74%
- Median
- 0.62%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.77%, IBM offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.
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.
IBM
75.57%
IT Services Industry
- Max
- 147.75%
- Q3
- 63.58%
- Median
- 24.63%
- Q1
- 0.00%
- Min
- 0.00%
IBM’s Dividend Payout Ratio of 75.57% is in the upper quartile for the IT Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | GDS | IBM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.77% |
| Dividend Payout Ratio (TTM) | 0.00% | 75.57% |
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.
IBM
38.31
IT Services Industry
- Max
- 41.55
- Q3
- 31.54
- Median
- 23.25
- Q1
- 18.12
- Min
- 6.57
A P/E Ratio of 38.31 places IBM in the upper quartile for the IT Services 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.
IBM
3.49
IT Services Industry
- Max
- 6.61
- Q3
- 4.37
- Median
- 2.02
- Q1
- 1.20
- Min
- 0.19
IBM’s P/S Ratio of 3.49 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)
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.
IBM
9.96
IT Services Industry
- Max
- 11.19
- Q3
- 6.38
- Median
- 3.47
- Q1
- 2.31
- Min
- 0.96
IBM’s P/B Ratio of 9.96 is in the upper tier for the IT Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | GDS | IBM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 11.54 | 38.31 |
| Price-to-Sales Ratio (TTM) | 4.82 | 3.49 |
| Price-to-Book Ratio (MRQ) | 1.40 | 9.96 |
| Price-to-Free Cash Flow Ratio (TTM) | -- | 19.01 |