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GDS vs MSFT

GDS
GDS Holdings Limited
BEARISH
Price
$41.19
Market Cap
$8.25B
Sector
Technology
AI Confidence
85%
MSFT
Microsoft Corporation
BULLISH
Price
$374.33
Market Cap
$2.78T
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
GDS
64.36
MSFT
23.42
Forward P/E
GDS
172.63
MSFT
19.86
P/B Ratio
GDS
2.14
MSFT
7.11
P/S Ratio
GDS
0.72
MSFT
9.11
EV/EBITDA
GDS
19.98
MSFT
16.05

Profitability

Gross Margin
GDS
22.61%
MSFT
68.59%
Operating Margin
GDS
12.43%
MSFT
47.09%
Profit Margin
GDS
8.31%
MSFT
39.04%
ROE
GDS
3.73%
MSFT
34.39%
ROA
GDS
1.23%
MSFT
14.86%

Growth

Revenue Growth
GDS
8.6%
MSFT
16.7%
Earnings Growth
GDS
--
MSFT
59.8%

Financial Health

Debt/Equity
GDS
1.71
MSFT
0.32
Current Ratio
GDS
2.6
MSFT
1.39
Quick Ratio
GDS
2.39
MSFT
1.24

Dividends

Dividend Yield
GDS
--
MSFT
0.97%
Payout Ratio
GDS
0.0%
MSFT
21.28%

AI Verdict

GDS BEARISH

GDS exhibits stable financial health with a Piotroski F-Score of 6/9, yet it is fundamentally disconnected from its valuation benchmarks. The current price of $41.19 represents a massive premium over the Graham Number ($16.66) and the Intrinsic Value ($4.48), while a PEG ratio of 12.70 suggests extreme overvaluation relative to its 8.6% revenue growth. Despite a 'Strong Buy' analyst consensus, the technical trend is heavily bearish (10/100) and the forward P/E of 172.63 is unsustainable.

Strengths
Stable financial health indicated by a Piotroski F-Score of 6/9
Strong short-term liquidity with a Current Ratio of 2.60
Low Price-to-Sales ratio (0.72) suggesting efficient revenue generation relative to market cap
Risks
Severe overvaluation relative to intrinsic value ($4.48) and Graham number ($16.66)
Unsustainable Forward P/E ratio of 172.63
High leverage with a Debt/Equity ratio of 1.71
MSFT BULLISH

Microsoft exhibits strong fundamental health with a Piotroski F-Score of 7/9, indicating robust financial stability. While the stock is currently experiencing a severe technical downtrend (0/100) and significant 6-month price depreciation (-28.6%), the current price of $374.33 sits well below the growth-based intrinsic value of $471.41 and the analyst target of $587.31. Exceptional earnings growth (59.8% YoY) and high operating margins (47.09%) suggest that the current price correction presents a value opportunity despite bearish insider sentiment.

Strengths
Strong financial health evidenced by a Piotroski F-Score of 7/9
Exceptional profitability with a 39.04% profit margin and 47.09% operating margin
Robust earnings growth (59.8% YoY) and consistent history of beating estimates
Risks
Severe short-term technical bearishness (0/100 trend score)
Bearish insider activity with $32.64M in net sales over the last 6 months
High Price-to-Book ratio (7.11) indicating a premium over book value

Compare Another Pair

GDS vs MSFT: Head-to-Head Comparison

This page compares GDS Holdings Limited (GDS) and Microsoft Corporation (MSFT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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