GDS vs. KLAC: A Head-to-Head Stock Comparison

Updated on August 27, 2025

Here’s a clear look at GDS and KLAC, 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, KLAC is a standard domestic listing.

Symbol	GDS	KLAC
Company Name	GDS Holdings Limited	KLA Corporation
Country	China	United States
GICS Sector	Information Technology	Information Technology
GICS Industry	IT Services	Semiconductors & Semiconductor Equipment
Market Capitalization	6.18 billion USD	116.07 billion USD
Exchange	NasdaqGM	NasdaqGS
Listing Date	November 2, 2016	October 8, 1980
Security Type	ADR	Common Stock

Historical Performance

This chart compares the performance of GDS and KLAC 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.

GDS vs. KLAC: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	GDS	KLAC
5-Day Price Return	2.49%	0.40%
13-Week Price Return	20.44%	14.60%
26-Week Price Return	-20.91%	13.53%
52-Week Price Return	-19.97%	10.15%
Month-to-Date Return	-7.21%	0.06%
Year-to-Date Return	44.47%	39.58%
10-Day Avg. Volume	12.84M	1.00M
3-Month Avg. Volume	8.70M	1.10M
3-Month Volatility	60.09%	33.36%
Beta	1.53	1.48

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.

KLAC

102.56%

Semiconductors & Semiconductor Equipment Industry

Max: 52.74%
Q3: 23.49%
Median: 11.60%
Q1: 3.23%
Min: -20.69%

KLAC’s Return on Equity of 102.56% is exceptionally high, placing it well beyond the typical range for the Semiconductors & Semiconductor Equipment industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

GDS vs. KLAC: A comparison of their Return on Equity (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

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.

KLAC

33.41%

Semiconductors & Semiconductor Equipment Industry

Max: 44.17%
Q3: 22.38%
Median: 11.95%
Q1: 3.21%
Min: -25.16%

A Net Profit Margin of 33.41% places KLAC in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

GDS vs. KLAC: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

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.

KLAC

39.28%

Semiconductors & Semiconductor Equipment Industry

Max: 58.03%
Q3: 27.84%
Median: 12.45%
Q1: 5.15%
Min: -28.61%

An Operating Profit Margin of 39.28% places KLAC in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

GDS vs. KLAC: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Profitability at a Glance

Symbol	GDS	KLAC
Return on Equity (TTM)	19.12%	102.56%
Return on Assets (TTM)	5.88%	26.23%
Net Profit Margin (TTM)	41.75%	33.41%
Operating Profit Margin (TTM)	21.69%	39.28%
Gross Profit Margin (TTM)	21.12%	61.99%

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.

KLAC

2.62

Semiconductors & Semiconductor Equipment Industry

Max: 8.42
Q3: 4.70
Median: 2.75
Q1: 2.07
Min: 1.04

KLAC’s Current Ratio of 2.62 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

GDS vs. KLAC: A comparison of their Current Ratio (MRQ) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

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.

KLAC

1.25

Semiconductors & Semiconductor Equipment Industry

Max: 1.09
Q3: 0.45
Median: 0.22
Q1: 0.01
Min: 0.00

With a Debt-to-Equity Ratio of 1.25, KLAC operates with exceptionally high leverage compared to the Semiconductors & Semiconductor Equipment industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

GDS vs. KLAC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

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.

KLAC

38.22

Semiconductors & Semiconductor Equipment Industry

Max: 174.00
Q3: 81.10
Median: 27.22
Q1: 7.28
Min: -4.26

KLAC’s Interest Coverage Ratio of 38.22 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

GDS vs. KLAC: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Financial Strength at a Glance

Symbol	GDS	KLAC
Current Ratio (MRQ)	1.47	2.62
Quick Ratio (MRQ)	1.29	1.78
Debt-to-Equity Ratio (MRQ)	1.75	1.25
Interest Coverage Ratio (TTM)	0.66	38.22

Growth

Revenue Growth

GDS vs. KLAC: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

GDS vs. KLAC: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

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.

KLAC

0.78%

Semiconductors & Semiconductor Equipment Industry

Max: 4.16%
Q3: 1.78%
Median: 0.74%
Q1: 0.00%
Min: 0.00%

KLAC’s Dividend Yield of 0.78% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.

GDS vs. KLAC: A comparison of their Dividend Yield (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

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.

KLAC

22.27%

Semiconductors & Semiconductor Equipment Industry

Max: 196.12%
Q3: 87.72%
Median: 26.57%
Q1: 0.00%
Min: 0.00%

KLAC’s Dividend Payout Ratio of 22.27% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

GDS vs. KLAC: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Dividend at a Glance

Symbol	GDS	KLAC
Dividend Yield (TTM)	0.00%	0.78%
Dividend Payout Ratio (TTM)	0.00%	22.27%

Valuation

Price-to-Earnings Ratio (TTM)

GDS

10.47

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 10.47 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

KLAC

28.39

Semiconductors & Semiconductor Equipment Industry

Max: 109.37
Q3: 57.11
Median: 28.95
Q1: 22.13
Min: 11.14

KLAC’s P/E Ratio of 28.39 is within the middle range for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

GDS vs. KLAC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

GDS

4.37

IT Services Industry

Max: 6.61
Q3: 4.37
Median: 2.02
Q1: 1.20
Min: 0.19

GDS’s P/S Ratio of 4.37 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.

KLAC

9.48

Semiconductors & Semiconductor Equipment Industry

Max: 16.09
Q3: 10.10
Median: 4.82
Q1: 2.60
Min: 0.93

KLAC’s P/S Ratio of 9.48 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

GDS vs. KLAC: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

GDS

1.41

IT Services Industry

Max: 11.19
Q3: 6.38
Median: 3.47
Q1: 2.31
Min: 0.96

GDS’s P/B Ratio of 1.41 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.

KLAC

25.24

Semiconductors & Semiconductor Equipment Industry

Max: 13.56
Q3: 6.75
Median: 3.68
Q1: 1.89
Min: 0.60

At 25.24, KLAC’s P/B Ratio is at an extreme premium to the Semiconductors & Semiconductor Equipment 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.

GDS vs. KLAC: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Semiconductors & Semiconductor Equipment industry benchmarks.

Valuation at a Glance

Symbol	GDS	KLAC
Price-to-Earnings Ratio (TTM)	10.47	28.39
Price-to-Sales Ratio (TTM)	4.37	9.48
Price-to-Book Ratio (MRQ)	1.41	25.24
Price-to-Free Cash Flow Ratio (TTM)	--	30.81