GDS vs. STM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at GDS and STM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
Both GDS and STM offer U.S. investors access to foreign companies, with GDS trading as an American Depositary Receipt (ADR) and STM as New York Registered Shares.
| Symbol | GDS | STM |
|---|---|---|
| Company Name | GDS Holdings Limited | STMicroelectronics N.V. |
| Country | China | Netherlands |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 5.75 billion USD | 20.43 billion USD |
| Exchange | NasdaqGM | NYSE |
| Listing Date | November 2, 2016 | December 8, 1994 |
| Security Type | ADR | NY Reg Shrs |
Historical Performance
This chart compares the performance of GDS and STM 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 | STM |
|---|---|---|
| 5-Day Price Return | -9.57% | -4.26% |
| 13-Week Price Return | -9.85% | -11.49% |
| 26-Week Price Return | 7.99% | -13.96% |
| 52-Week Price Return | -19.97% | -14.37% |
| Month-to-Date Return | -13.70% | -7.40% |
| Year-to-Date Return | 29.30% | -18.60% |
| 10-Day Avg. Volume | 5.28M | 2.48M |
| 3-Month Avg. Volume | 10.11M | 2.56M |
| 3-Month Volatility | 59.37% | 42.09% |
| Beta | 2.45 | 1.17 |
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.
STM
4.88%
Semiconductors & Semiconductor Equipment Industry
- Max
- 49.05%
- Q3
- 22.19%
- Median
- 7.96%
- Q1
- 0.99%
- Min
- -15.65%
STM’s Return on Equity of 4.88% is on par with the norm for the Semiconductors & Semiconductor Equipment 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.
STM
7.65%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 24.47%
- Median
- 11.88%
- Q1
- 0.60%
- Min
- -25.46%
STM’s Net Profit Margin of 7.65% is aligned with the median group of its peers in the Semiconductors & Semiconductor Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
STM
6.17%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.76%
- Median
- 12.14%
- Q1
- 3.29%
- Min
- -32.60%
STM’s Operating Profit Margin of 6.17% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | GDS | STM |
|---|---|---|
| Return on Equity (TTM) | 19.17% | 4.88% |
| Return on Assets (TTM) | 6.08% | 3.47% |
| Net Profit Margin (TTM) | 42.87% | 7.65% |
| Operating Profit Margin (TTM) | 22.44% | 6.17% |
| Gross Profit Margin (TTM) | 21.45% | 32.96% |
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.
STM
2.32
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.57
- Q3
- 4.28
- Median
- 2.86
- Q1
- 2.22
- Min
- 1.02
STM’s Current Ratio of 2.32 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
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.
STM
0.15
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.18
- Q3
- 0.48
- Median
- 0.24
- Q1
- 0.01
- Min
- 0.00
STM’s Debt-to-Equity Ratio of 0.15 is typical for the Semiconductors & Semiconductor Equipment 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.
STM
5.37
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.21
- Median
- 22.37
- Q1
- 6.43
- Min
- -7.80
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, STM’s Interest Coverage Ratio of 5.37 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | GDS | STM |
|---|---|---|
| Current Ratio (MRQ) | 2.00 | 2.32 |
| Quick Ratio (MRQ) | 1.93 | 1.61 |
| Debt-to-Equity Ratio (MRQ) | 1.82 | 0.15 |
| Interest Coverage Ratio (TTM) | 0.66 | 5.37 |
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.
STM
1.52%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.58%
- Q3
- 1.59%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
STM’s Dividend Yield of 1.52% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
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.
STM
35.28%
Semiconductors & Semiconductor Equipment Industry
- Max
- 211.90%
- Q3
- 88.01%
- Median
- 25.84%
- Q1
- 0.00%
- Min
- 0.00%
STM’s Dividend Payout Ratio of 35.28% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | GDS | STM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.52% |
| Dividend Payout Ratio (TTM) | 0.00% | 35.28% |
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.
STM
23.22
Semiconductors & Semiconductor Equipment Industry
- Max
- 95.58
- Q3
- 58.67
- Median
- 34.77
- Q1
- 25.45
- Min
- 12.63
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, STM’s P/E Ratio of 23.22 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.
STM
1.78
Semiconductors & Semiconductor Equipment Industry
- Max
- 18.34
- Q3
- 10.38
- Median
- 5.38
- Q1
- 2.49
- Min
- 0.32
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, STM’s P/S Ratio of 1.78 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
STM
1.46
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.22
- Q3
- 8.33
- Median
- 4.39
- Q1
- 1.79
- Min
- 0.30
STM’s P/B Ratio of 1.46 is in the lower quartile for the Semiconductors & Semiconductor 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.
Valuation at a Glance
| Symbol | GDS | STM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 9.32 | 23.22 |
| Price-to-Sales Ratio (TTM) | 3.99 | 1.78 |
| Price-to-Book Ratio (MRQ) | 1.61 | 1.46 |
| Price-to-Free Cash Flow Ratio (TTM) | -- | 233.98 |