GDS Holdings Ltd (GDS)vsInternational Business Machines (IBM)
GDS
GDS Holdings Ltd
$30.82
-0.77%
TECHNOLOGY · Cap: $6.28B
IBM
International Business Machines
$249.20
+2.43%
TECHNOLOGY · Cap: $229.21B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 463% more annual revenue ($69.09B vs $12.26B). GDS leads profitability with a 30.5% profit margin vs 15.5%. IBM appears more attractively valued with a PEG of 2.21. GDS earns a higher WallStSmart Score of 69/100 (B-).
GDS
Strong Buy69
out of 100
Grade: B-
IBM
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+17.0%
Fair Value
$55.98
Current Price
$30.82
$25.16 discount
Margin of Safety
-84.8%
Fair Value
$131.65
Current Price
$249.20
$117.55 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Keeps 31 of every $100 in revenue as profit
Earnings expanding 207.0% YoY
Attractively priced relative to earnings
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Generating 2.4B in free cash flow
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Distress zone — elevated risk
Expensive relative to growth rate
1.1% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : IBM
The strongest argument for IBM centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.5% and operating margin at 16.6%.
Bear Case : GDS
The primary concerns for GDS are Debt/Equity, PEG Ratio, Altman Z-Score.
Bear Case : IBM
The primary concerns for IBM are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.89 is elevated, increasing financial risk.
Key Dynamics to Monitor
GDS profiles as a mature stock while IBM is a value play — different risk/reward profiles.
IBM carries more volatility with a beta of 0.71 — expect wider price swings.
GDS is growing revenue faster at 6.5% — sustainability is the question.
IBM generates stronger free cash flow (2.4B), providing more financial flexibility.
Bottom Line
GDS scores higher overall (69/100 vs 54/100), backed by strong 30.5% margins. 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.
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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