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

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

SymbolGDSPSTG
Company NameGDS Holdings LimitedPure Storage, Inc.
CountryChinaUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesTechnology Hardware, Storage & Peripherals
Market Capitalization6.88 billion USD19.46 billion USD
ExchangeNasdaqGMNYSE
Listing DateNovember 2, 2016October 6, 2015
Security TypeADRCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolGDSPSTG
5-Day Price Return-1.84%3.01%
13-Week Price Return29.01%11.64%
26-Week Price Return42.30%-14.57%
52-Week Price Return-19.97%4.13%
Month-to-Date Return-0.79%0.05%
Year-to-Date Return54.47%-3.06%
10-Day Avg. Volume6.51M2.00M
3-Month Avg. Volume8.73M2.64M
3-Month Volatility60.94%40.02%
Beta1.561.18

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.

PSTG

9.44%

Technology Hardware, Storage & Peripherals Industry

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

PSTG’s Return on Equity of 9.44% is on par with the norm for the Technology Hardware, Storage & Peripherals industry, indicating its profitability relative to shareholder equity is typical for the sector.

GDS vs. PSTG: 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.

PSTG

3.93%

Technology Hardware, Storage & Peripherals Industry

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

PSTG’s Net Profit Margin of 3.93% is aligned with the median group of its peers in the Technology Hardware, Storage & Peripherals industry. This indicates its ability to convert revenue into profit is typical for the sector.

GDS vs. PSTG: 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.

PSTG

2.95%

Technology Hardware, Storage & Peripherals Industry

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

PSTG’s Operating Profit Margin of 2.95% is in the lower quartile for the Technology Hardware, Storage & Peripherals industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

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

Profitability at a Glance

SymbolGDSPSTG
Return on Equity (TTM)19.12%9.44%
Return on Assets (TTM)5.88%3.32%
Net Profit Margin (TTM)41.75%3.93%
Operating Profit Margin (TTM)21.69%2.95%
Gross Profit Margin (TTM)21.12%69.26%

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.

PSTG

1.61

Technology Hardware, Storage & Peripherals Industry

Max
2.47
Q3
1.98
Median
1.40
Q1
1.26
Min
0.70

PSTG’s Current Ratio of 1.61 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. PSTG: 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.

PSTG

0.08

Technology Hardware, Storage & Peripherals Industry

Max
1.47
Q3
0.93
Median
0.32
Q1
0.19
Min
0.00

Falling into the lower quartile for the Technology Hardware, Storage & Peripherals industry, PSTG’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

GDS vs. PSTG: 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.

PSTG

-2.95

Technology Hardware, Storage & Peripherals Industry

Max
204.63
Q3
90.22
Median
21.70
Q1
6.79
Min
-23.93

PSTG has a negative Interest Coverage Ratio of -2.95. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

GDS vs. PSTG: 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

SymbolGDSPSTG
Current Ratio (MRQ)1.471.61
Quick Ratio (MRQ)1.291.40
Debt-to-Equity Ratio (MRQ)1.750.08
Interest Coverage Ratio (TTM)0.66-2.95

Growth

Revenue Growth

GDS vs. PSTG: 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. PSTG: 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.

PSTG

0.00%

Technology Hardware, Storage & Peripherals Industry

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

PSTG 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.

GDS vs. PSTG: 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.

PSTG

0.00%

Technology Hardware, Storage & Peripherals Industry

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

PSTG 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.

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

Dividend at a Glance

SymbolGDSPSTG
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

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.

PSTG

151.99

Technology Hardware, Storage & Peripherals Industry

Max
43.16
Q3
27.56
Median
17.85
Q1
12.48
Min
6.21

At 151.99, PSTG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Technology Hardware, Storage & Peripherals industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

GDS vs. PSTG: 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.

PSTG

5.97

Technology Hardware, Storage & Peripherals Industry

Max
4.27
Q3
1.99
Median
0.93
Q1
0.45
Min
0.04

With a P/S Ratio of 5.97, PSTG trades at a valuation that eclipses even the highest in the Technology Hardware, Storage & Peripherals industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

GDS vs. PSTG: 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.

PSTG

12.51

Technology Hardware, Storage & Peripherals Industry

Max
12.51
Q3
6.11
Median
1.73
Q1
1.01
Min
0.31

PSTG’s P/B Ratio of 12.51 is in the upper tier for the Technology Hardware, Storage & Peripherals 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.

GDS vs. PSTG: 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

SymbolGDSPSTG
Price-to-Earnings Ratio (TTM)11.54151.99
Price-to-Sales Ratio (TTM)4.825.97
Price-to-Book Ratio (MRQ)1.4012.51
Price-to-Free Cash Flow Ratio (TTM)--34.32