WallStSmart

GDS Holdings Ltd (GDS)vsInfosys Ltd ADR (INFY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Infosys Ltd ADR generates 66% more annual revenue ($20.30B vs $12.26B). GDS leads profitability with a 30.5% profit margin vs 16.4%. INFY appears more attractively valued with a PEG of 1.85. GDS earns a higher WallStSmart Score of 69/100 (B-).

GDS

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 6.5Value: 6.0Quality: 4.5
Piotroski: 4/9Altman Z: 0.65

INFY

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 7.3Quality: 8.0
Piotroski: 4/9Altman Z: 4.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GDSUndervalued (+17.0%)

Margin of Safety

+17.0%

Fair Value

$55.98

Current Price

$30.82

$25.16 discount

UndervaluedFair: $55.98Overvalued
INFYUndervalued (+83.8%)

Margin of Safety

+83.8%

Fair Value

$97.19

Current Price

$11.07

$86.12 discount

UndervaluedFair: $97.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GDS4 strengths · Avg: 9.5/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
30.5%10/10

Keeps 31 of every $100 in revenue as profit

EPS GrowthGrowth
207.0%10/10

Earnings expanding 207.0% YoY

P/E RatioValuation
13.9x8/10

Attractively priced relative to earnings

INFY5 strengths · Avg: 9.2/10
Return on EquityProfitability
34.6%10/10

Every $100 of equity generates 35 in profit

Debt/EquityHealth
0.1010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5710/10

Safe zone — low bankruptcy risk

P/E RatioValuation
13.5x8/10

Attractively priced relative to earnings

Operating MarginProfitability
21.2%8/10

Strong operational efficiency at 21.2%

Areas to Watch

GDS3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.463/10

Elevated debt levels

PEG RatioValuation
7.242/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.652/10

Distress zone — elevated risk

INFY3 concerns · Avg: 4.0/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

Price/BookValuation
9.3x4/10

Trading at 9.3x book value

Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Comparative Analysis Report

WallStSmart Research

Bull Case : GDS

The strongest argument for GDS centers on Price/Book, Profit Margin, EPS Growth. Profitability is solid with margins at 30.5% and operating margin at 14.2%.

Bull Case : INFY

The strongest argument for INFY centers on Return on Equity, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 16.4% and operating margin at 21.2%.

Bear Case : GDS

The primary concerns for GDS are Debt/Equity, PEG Ratio, Altman Z-Score.

Bear Case : INFY

The primary concerns for INFY are PEG Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

GDS profiles as a mature stock while INFY is a value play — different risk/reward profiles.

GDS carries more volatility with a beta of 0.43 — expect wider price swings.

GDS is growing revenue faster at 6.5% — sustainability is the question.

INFY generates stronger free cash flow (970M), providing more financial flexibility.

Bottom Line

GDS scores higher overall (69/100 vs 59/100), backed by strong 30.5% margins. INFY offers better value entry with a 83.8% margin of safety. Both earn "Strong 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.

Infosys Ltd ADR

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Infosys Limited offers next generation digital consulting, technology, outsourcing and services in North America, Europe, India and internationally. The company is headquartered in Bengaluru, India.

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