GDS vs. MSTR: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GDS and MSTR, 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, MSTR is a standard domestic listing.
| Symbol | GDS | MSTR |
|---|---|---|
| Company Name | GDS Holdings Limited | Strategy Inc |
| Country | China | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | Software |
| Market Capitalization | 5.75 billion USD | 56.08 billion USD |
| Exchange | NasdaqGM | NasdaqGS |
| Listing Date | November 2, 2016 | June 11, 1998 |
| Security Type | ADR | Common Stock |
Historical Performance
This chart compares the performance of GDS and MSTR 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 | MSTR |
|---|---|---|
| 5-Day Price Return | -9.57% | -15.53% |
| 13-Week Price Return | -9.85% | -46.25% |
| 26-Week Price Return | 7.99% | -53.11% |
| 52-Week Price Return | -19.97% | -40.36% |
| Month-to-Date Return | -13.70% | -27.49% |
| Year-to-Date Return | 29.30% | -32.53% |
| 10-Day Avg. Volume | 5.28M | 14.41M |
| 3-Month Avg. Volume | 10.11M | 11.87M |
| 3-Month Volatility | 59.37% | 58.37% |
| Beta | 2.45 | 3.47 |
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.
MSTR
19.76%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
MSTR’s Return on Equity of 19.76% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
MSTR
1,667.09%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- Min
- -41.00%
MSTR’s Net Profit Margin of 1,667.09% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
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.
MSTR
2,312.91%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
MSTR’s Operating Profit Margin of 2,312.91% is exceptionally high, placing it well above the typical range for the Software 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 | MSTR |
|---|---|---|
| Return on Equity (TTM) | 19.17% | 19.76% |
| Return on Assets (TTM) | 6.08% | 15.21% |
| Net Profit Margin (TTM) | 42.87% | 1,667.09% |
| Operating Profit Margin (TTM) | 22.44% | 2,312.91% |
| Gross Profit Margin (TTM) | 21.45% | 70.12% |
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.
MSTR
0.66
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- Q1
- 1.03
- Min
- 0.25
MSTR’s Current Ratio of 0.66 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.
MSTR
0.14
Software Industry
- Max
- 2.04
- Q3
- 0.86
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
MSTR’s Debt-to-Equity Ratio of 0.14 is typical for the Software 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
- 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.
MSTR
-30.23
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- Min
- -71.23
MSTR has a negative Interest Coverage Ratio of -30.23. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | GDS | MSTR |
|---|---|---|
| Current Ratio (MRQ) | 2.00 | 0.66 |
| Quick Ratio (MRQ) | 1.93 | 0.54 |
| Debt-to-Equity Ratio (MRQ) | 1.82 | 0.14 |
| Interest Coverage Ratio (TTM) | 0.66 | -30.23 |
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.
MSTR
0.34%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.34%, MSTR offers a more attractive income stream than most of its peers in the Software industry, signaling a strong commitment to shareholder returns.
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.
MSTR
0.00%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
MSTR 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.
Dividend at a Glance
| Symbol | GDS | MSTR |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.34% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
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.
MSTR
7.25
Software Industry
- Max
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
In the lower quartile for the Software industry, MSTR’s P/E Ratio of 7.25 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
MSTR
120.85
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
With a P/S Ratio of 120.85, MSTR trades at a valuation that eclipses even the highest in the Software 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
1.61
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.
MSTR
1.59
Software Industry
- Max
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
MSTR’s P/B Ratio of 1.59 is in the lower quartile for the Software 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 | MSTR |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 9.32 | 7.25 |
| Price-to-Sales Ratio (TTM) | 3.99 | 120.85 |
| Price-to-Book Ratio (MRQ) | 1.61 | 1.59 |
| Price-to-Free Cash Flow Ratio (TTM) | -- | 978.70 |