Applied Digital Corporation (APLD) vs GDS Holdings (GDS)

Applied Digital Corporation and GDS Holdings are both Information Technology Services companies. Applied Digital Corporation is the larger, with a market value of $8.0B against $6.5B — 1.2× the size. Applied Digital Corporation has negative trailing earnings, so its P/E is not meaningful; GDS Holdings trades at 12.1×. Applied Digital Corporation grew revenue faster over the last twelve months: 167.5% against 20.0%. GDS Holdings has the higher net margin (30.3% vs −40.9%) and the higher return on invested capital (0.57% vs −5.40%). Across the 17 metrics below, GDS Holdings leads on 12 and Applied Digital Corporation on 5.

Valuation

Metric APLD GDS Information Technology Services median
P/E n/m 12.09 14.63
P/S 11.82 3.63 1.13
P/B 4.19 1.43 2.10
Price to free cash flow n/m n/m 10.11
EV/EBITDA n/m 18.34 8.56
EV/Sales 13.48 6.11 1.20
Earnings yield (3.39%) 8.27% 4.56%
Free cash flow yield (38.43%) (1.71%) 4.37%

Profitability

Metric APLD GDS Information Technology Services median
Gross margin 25.79% 24.90% 31.05%
Operating margin (38.68%) 4.59% 3.30%
Net margin (40.94%) 30.34% 2.09%
Free cash flow margin (454.12%) (6.19%) 0.00%
Return on equity (22.52%) 13.53% 4.12%
Return on assets (4.24%) 4.49% 0.61%
Return on invested capital (5.40%) 0.57% 0.57%

Growth

Metric APLD GDS Information Technology Services median
Revenue growth (TTM) 167.45% 20.00% 7.12%
EPS growth (last fiscal year) 21.55% (73.82%) —
Revenue growth, 5-year CAGR — 13.84% 7.71%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric APLD GDS Information Technology Services median
Debt to equity 2.89 1.47 0.45
Current ratio 4.01 1.78 1.66
Net debt to EBITDA (6.23) 8.69 0.44

Dividend

Metric APLD GDS Information Technology Services median
Dividend yield — — 1.21%
Payout ratio 0.00 0.00 0.00

Size

Metric APLD GDS Information Technology Services median
Market cap 8.03b 6.50b 1.36b

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