GDS Holdings Ltd (GDS)vsMicrosoft Corporation (MSFT)
GDS
GDS Holdings Ltd
$34.00
-6.16%
TECHNOLOGY · Cap: $6.52B
MSFT
Microsoft Corporation
$416.67
+0.10%
TECHNOLOGY · Cap: $3.28T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 2536% more annual revenue ($318.27B vs $12.08B). MSFT leads profitability with a 39.3% profit margin vs 23.5%. 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-
MSFT
Strong Buy72
out of 100
Grade: B
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 MSFT.
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 30 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 46.3%
Generating 15.8B in free cash flow
Conservative balance sheet, low leverage
Areas to Watch
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
Moderate valuation
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 : MSFT
The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.
Bear Case : GDS
The primary concerns for GDS are Debt/Equity, Free Cash Flow, Altman Z-Score.
Bear Case : MSFT
The primary concerns for MSFT are P/E Ratio.
Key Dynamics to Monitor
MSFT carries more volatility with a beta of 1.09 — expect wider price swings.
GDS is growing revenue faster at 23.6% — sustainability is the question.
MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GDS scores higher overall (83/100 vs 72/100), backed by strong 23.5% margins and 23.6% revenue growth. Both earn "Exceptional Buy" and "Strong 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.
Microsoft Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
Visit Website →Compare with Other INFORMATION TECHNOLOGY SERVICES Stocks
Want to dig deeper into these stocks?