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

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Here’s a clear look at GDS and NOK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Both GDS and NOK are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.

SymbolGDSNOK
Company NameGDS Holdings LimitedNokia Oyj
CountryChinaFinland
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesCommunications Equipment
Market Capitalization6.76 billion USD23.05 billion USD
ExchangeNasdaqGMNYSE
Listing DateNovember 2, 2016July 1, 1994
Security TypeADRADR

Historical Performance

This chart compares the performance of GDS and NOK 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. NOK: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolGDSNOK
5-Day Price Return-4.28%1.84%
13-Week Price Return11.79%-21.01%
26-Week Price Return-4.13%-22.07%
52-Week Price Return-19.97%-30.85%
Month-to-Date Return-11.83%1.62%
Year-to-Date Return37.28%-14.70%
10-Day Avg. Volume10.23M7.92M
3-Month Avg. Volume8.68M9.65M
3-Month Volatility62.39%29.78%
Beta1.540.80

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.

NOK

5.01%

Communications Equipment Industry

Max
32.05%
Q3
19.58%
Median
11.77%
Q1
2.23%
Min
-11.93%

NOK’s Return on Equity of 5.01% is on par with the norm for the Communications Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

GDS vs. NOK: A comparison of their Return on Equity (TTM) against their respective IT Services and Communications 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.

NOK

5.31%

Communications Equipment Industry

Max
23.65%
Q3
14.32%
Median
5.31%
Q1
1.45%
Min
-12.72%

NOK’s Net Profit Margin of 5.31% is aligned with the median group of its peers in the Communications Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

GDS vs. NOK: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Communications 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.

NOK

6.21%

Communications Equipment Industry

Max
42.27%
Q3
18.90%
Median
6.21%
Q1
2.97%
Min
-20.72%

NOK’s Operating Profit Margin of 6.21% is around the midpoint for the Communications Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

GDS vs. NOK: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Communications Equipment industry benchmarks.

Profitability at a Glance

SymbolGDSNOK
Return on Equity (TTM)19.12%5.01%
Return on Assets (TTM)5.88%2.68%
Net Profit Margin (TTM)41.75%5.31%
Operating Profit Margin (TTM)21.69%6.21%
Gross Profit Margin (TTM)21.12%44.23%

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.

NOK

1.46

Communications Equipment Industry

Max
1.72
Q3
1.72
Median
1.46
Q1
1.18
Min
0.93

NOK’s Current Ratio of 1.46 aligns with the median group of the Communications Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

GDS vs. NOK: A comparison of their Current Ratio (MRQ) against their respective IT Services and Communications 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.

NOK

0.21

Communications Equipment Industry

Max
1.55
Q3
0.92
Median
0.55
Q1
0.30
Min
0.00

Falling into the lower quartile for the Communications Equipment industry, NOK’s Debt-to-Equity Ratio of 0.21 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

GDS vs. NOK: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Communications 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.

NOK

34.19

Communications Equipment Industry

Max
181.73
Q3
113.63
Median
7.59
Q1
3.82
Min
-5.39

NOK’s Interest Coverage Ratio of 34.19 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

GDS vs. NOK: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Communications Equipment industry benchmarks.

Financial Strength at a Glance

SymbolGDSNOK
Current Ratio (MRQ)1.471.46
Quick Ratio (MRQ)1.291.21
Debt-to-Equity Ratio (MRQ)1.750.21
Interest Coverage Ratio (TTM)0.6634.19

Growth

Revenue Growth

GDS vs. NOK: 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. NOK: 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.

NOK

3.61%

Communications Equipment Industry

Max
3.88%
Q3
2.75%
Median
0.93%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 3.61%, NOK offers a more attractive income stream than most of its peers in the Communications Equipment industry, signaling a strong commitment to shareholder returns.

GDS vs. NOK: A comparison of their Dividend Yield (TTM) against their respective IT Services and Communications 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.

NOK

50.74%

Communications Equipment Industry

Max
111.16%
Q3
55.91%
Median
28.42%
Q1
0.00%
Min
0.00%

NOK’s Dividend Payout Ratio of 50.74% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

GDS vs. NOK: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Communications Equipment industry benchmarks.

Dividend at a Glance

SymbolGDSNOK
Dividend Yield (TTM)0.00%3.61%
Dividend Payout Ratio (TTM)0.00%50.74%

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.

NOK

19.25

Communications Equipment Industry

Max
57.30
Q3
47.92
Median
27.50
Q1
17.89
Min
13.89

NOK’s P/E Ratio of 19.25 is within the middle range for the Communications 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. NOK: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Communications 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.

NOK

1.02

Communications Equipment Industry

Max
11.03
Q3
5.53
Median
2.20
Q1
0.99
Min
0.40

NOK’s P/S Ratio of 1.02 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

GDS vs. NOK: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Communications 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.

NOK

1.21

Communications Equipment Industry

Max
9.66
Q3
5.60
Median
3.73
Q1
2.67
Min
0.30

NOK’s P/B Ratio of 1.21 is in the lower quartile for the Communications Equipment 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.

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

Valuation at a Glance

SymbolGDSNOK
Price-to-Earnings Ratio (TTM)10.4719.25
Price-to-Sales Ratio (TTM)4.371.02
Price-to-Book Ratio (MRQ)1.411.21
Price-to-Free Cash Flow Ratio (TTM)--13.27