Seek Returns logo

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

Updated on

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

SymbolGDSNTAP
Company NameGDS Holdings LimitedNetApp, Inc.
CountryChinaUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesTechnology Hardware, Storage & Peripherals
Market Capitalization6.88 billion USD21.89 billion USD
ExchangeNasdaqGMNasdaqGS
Listing DateNovember 2, 2016November 21, 1995
Security TypeADRCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolGDSNTAP
5-Day Price Return-1.84%5.34%
13-Week Price Return29.01%11.15%
26-Week Price Return42.30%-11.80%
52-Week Price Return-19.97%-11.01%
Month-to-Date Return-0.79%5.06%
Year-to-Date Return54.47%-5.75%
10-Day Avg. Volume6.51M1.35M
3-Month Avg. Volume8.73M2.01M
3-Month Volatility60.94%25.42%
Beta1.561.45

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.

NTAP

123.03%

Technology Hardware, Storage & Peripherals Industry

Max
47.24%
Q3
29.40%
Median
9.11%
Q1
6.06%
Min
-0.79%

NTAP’s Return on Equity of 123.03% is exceptionally high, placing it well beyond the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

GDS vs. NTAP: A comparison of their Return on Equity (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals 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.

NTAP

18.05%

Technology Hardware, Storage & Peripherals Industry

Max
13.86%
Q3
8.17%
Median
4.62%
Q1
3.65%
Min
-0.21%

NTAP’s Net Profit Margin of 18.05% is exceptionally high, placing it well beyond the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

GDS vs. NTAP: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals 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.

NTAP

20.34%

Technology Hardware, Storage & Peripherals Industry

Max
17.80%
Q3
10.33%
Median
6.31%
Q1
4.86%
Min
2.53%

NTAP’s Operating Profit Margin of 20.34% is exceptionally high, placing it well above the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

GDS vs. NTAP: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Profitability at a Glance

SymbolGDSNTAP
Return on Equity (TTM)19.12%123.03%
Return on Assets (TTM)5.88%12.44%
Net Profit Margin (TTM)41.75%18.05%
Operating Profit Margin (TTM)21.69%20.34%
Gross Profit Margin (TTM)21.12%70.19%

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.

NTAP

1.26

Technology Hardware, Storage & Peripherals Industry

Max
2.47
Q3
1.98
Median
1.40
Q1
1.26
Min
0.70

NTAP’s Current Ratio of 1.26 aligns with the median group of the Technology Hardware, Storage & Peripherals industry, indicating that its short-term liquidity is in line with its sector peers.

GDS vs. NTAP: A comparison of their Current Ratio (MRQ) against their respective IT Services and Technology Hardware, Storage & Peripherals 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.

NTAP

3.11

Technology Hardware, Storage & Peripherals Industry

Max
1.47
Q3
0.93
Median
0.32
Q1
0.19
Min
0.00

With a Debt-to-Equity Ratio of 3.11, NTAP operates with exceptionally high leverage compared to the Technology Hardware, Storage & Peripherals industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

GDS vs. NTAP: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Technology Hardware, Storage & Peripherals 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.

NTAP

17.59

Technology Hardware, Storage & Peripherals Industry

Max
204.63
Q3
90.22
Median
21.70
Q1
6.79
Min
-23.93

NTAP’s Interest Coverage Ratio of 17.59 is positioned comfortably within the norm for the Technology Hardware, Storage & Peripherals industry, indicating a standard and healthy capacity to cover its interest payments.

GDS vs. NTAP: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Financial Strength at a Glance

SymbolGDSNTAP
Current Ratio (MRQ)1.471.26
Quick Ratio (MRQ)1.291.22
Debt-to-Equity Ratio (MRQ)1.753.11
Interest Coverage Ratio (TTM)0.6617.59

Growth

Revenue Growth

GDS vs. NTAP: 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. NTAP: 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.

NTAP

1.97%

Technology Hardware, Storage & Peripherals Industry

Max
4.50%
Q3
3.66%
Median
1.90%
Q1
0.00%
Min
0.00%

NTAP’s Dividend Yield of 1.97% is consistent with its peers in the Technology Hardware, Storage & Peripherals industry, providing a dividend return that is standard for its sector.

GDS vs. NTAP: A comparison of their Dividend Yield (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals 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.

NTAP

35.75%

Technology Hardware, Storage & Peripherals Industry

Max
142.87%
Q3
66.07%
Median
42.79%
Q1
0.00%
Min
0.00%

NTAP’s Dividend Payout Ratio of 35.75% is within the typical range for the Technology Hardware, Storage & Peripherals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

GDS vs. NTAP: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend at a Glance

SymbolGDSNTAP
Dividend Yield (TTM)0.00%1.97%
Dividend Payout Ratio (TTM)0.00%35.75%

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.

NTAP

18.19

Technology Hardware, Storage & Peripherals Industry

Max
43.16
Q3
27.56
Median
17.85
Q1
12.48
Min
6.21

NTAP’s P/E Ratio of 18.19 is within the middle range for the Technology Hardware, Storage & Peripherals 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. NTAP: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

NTAP

3.28

Technology Hardware, Storage & Peripherals Industry

Max
4.27
Q3
1.99
Median
0.93
Q1
0.45
Min
0.04

NTAP’s P/S Ratio of 3.28 is in the upper echelon for the Technology Hardware, Storage & Peripherals 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.

GDS vs. NTAP: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

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.

NTAP

17.30

Technology Hardware, Storage & Peripherals Industry

Max
12.51
Q3
6.11
Median
1.73
Q1
1.01
Min
0.31

At 17.30, NTAP’s P/B Ratio is at an extreme premium to the Technology Hardware, Storage & Peripherals 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. NTAP: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

SymbolGDSNTAP
Price-to-Earnings Ratio (TTM)11.5418.19
Price-to-Sales Ratio (TTM)4.823.28
Price-to-Book Ratio (MRQ)1.4017.30
Price-to-Free Cash Flow Ratio (TTM)--16.13