GDS Holdings Ltd (GDS)vsInternational Business Machines (IBM)
GDS
GDS Holdings Ltd
$34.00
-6.16%
TECHNOLOGY · Cap: $6.52B
IBM
International Business Machines
$284.84
-0.95%
TECHNOLOGY · Cap: $309.44B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 471% more annual revenue ($68.91B vs $12.08B). GDS leads profitability with a 23.5% profit margin vs 15.6%. GDS appears more attractively valued with a PEG of 1.09. GDS earns a higher WallStSmart Score of 83/100 (A-).
GDS
Exceptional Buy83
out of 100
Grade: A-
IBM
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+18.1%
Fair Value
$56.72
Current Price
$34.00
$22.72 discount
Intrinsic value data unavailable for IBM.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 207.0% YoY
Keeps 24 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 27.0%
Revenue surging 23.6% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 33 in profit
Generating 4.8B in free cash flow
Areas to Watch
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
Moderate valuation
Trading at 8.1x book value
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : GDS
The strongest argument for GDS centers on EPS Growth, Profit Margin, Price/Book. Profitability is solid with margins at 23.5% and operating margin at 27.0%. Revenue growth of 23.6% demonstrates continued momentum.
Bull Case : IBM
The strongest argument for IBM centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.6% and operating margin at 13.8%.
Bear Case : GDS
The primary concerns for GDS are Debt/Equity, Free Cash Flow, Altman Z-Score.
Bear Case : IBM
The primary concerns for IBM are P/E Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.14 is elevated, increasing financial risk.
Key Dynamics to Monitor
GDS profiles as a growth stock while IBM is a mature play — different risk/reward profiles.
IBM carries more volatility with a beta of 0.58 — expect wider price swings.
GDS is growing revenue faster at 23.6% — sustainability is the question.
IBM generates stronger free cash flow (4.8B), providing more financial flexibility.
Bottom Line
GDS scores higher overall (83/100 vs 57/100), backed by strong 23.5% margins and 23.6% revenue growth. Both earn "Exceptional Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
International Business Machines
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines in 1924. IBM is incorporated in New York. IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years. Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s.
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