WallStSmart

Fidelity National Information Services Inc (FIS)vsGDS Holdings Ltd (GDS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

GDS Holdings Ltd generates 7% more annual revenue ($11.43B vs $10.68B). GDS leads profitability with a 8.3% profit margin vs 3.6%. FIS appears more attractively valued with a PEG of 0.28. FIS earns a higher WallStSmart Score of 67/100 (B-).

FIS

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 5.5Value: 4.7Quality: 5.0
Piotroski: 5/9Altman Z: -0.02

GDS

Hold

47

out of 100

Grade: D+

Growth: 5.3Profit: 5.0Value: 2.0Quality: 5.3
Piotroski: 4/9Altman Z: 0.43
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FISSignificantly Overvalued (-41.4%)

Margin of Safety

-41.4%

Fair Value

$34.16

Current Price

$47.60

$13.44 premium

UndervaluedFair: $34.16Overvalued
GDSSignificantly Overvalued (-986.0%)

Margin of Safety

-986.0%

Fair Value

$4.28

Current Price

$45.00

$40.72 premium

UndervaluedFair: $4.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FIS4 strengths · Avg: 9.0/10
PEG RatioValuation
0.2810/10

Growing faster than its price suggests

EPS GrowthGrowth
88.1%10/10

Earnings expanding 88.1% YoY

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.6%8/10

Strong operational efficiency at 24.6%

GDS1 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

FIS4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.6%3/10

ROE of 2.6% — below average capital efficiency

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

P/E RatioValuation
67.3x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
-0.022/10

Distress zone — elevated risk

GDS4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
3.7%3/10

ROE of 3.7% — below average capital efficiency

PEG RatioValuation
13.172/10

Expensive relative to growth rate

P/E RatioValuation
69.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : FIS

The strongest argument for FIS centers on PEG Ratio, EPS Growth, Price/Book. PEG of 0.28 suggests the stock is reasonably priced for its growth.

Bull Case : GDS

The strongest argument for GDS centers on Price/Book.

Bear Case : FIS

The primary concerns for FIS are Return on Equity, Profit Margin, P/E Ratio. A P/E of 67.3x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.

Bear Case : GDS

The primary concerns for GDS are EPS Growth, Return on Equity, PEG Ratio. A P/E of 69.0x leaves little room for execution misses.

Key Dynamics to Monitor

FIS carries more volatility with a beta of 0.91 — expect wider price swings.

GDS is growing revenue faster at 8.6% — sustainability is the question.

FIS generates stronger free cash flow (779M), providing more financial flexibility.

Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FIS scores higher overall (67/100 vs 47/100). Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Fidelity National Information Services Inc

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

FIS is an American Fortune 500 company which offers a wide range of financial products and services. Headquartered in Jacksonville, Florida, FIS employs approximately 63,000 people worldwide. FIS is most known for its development of Financial Technology, or FinTech, and as of Q2 2020 it offers its solutions in three primary segments: Merchant Solutions, Banking Solutions, and Capital Market Solutions.

GDS Holdings Ltd

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · China

GDS Holdings Limited, develops and operates data centers in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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