Genpact Limited (G) vs GDS Holdings (GDS)

Genpact Limited and GDS Holdings are both Information Technology Services companies. Genpact Limited is the larger, with a market value of $6.3B against $4.9B — 1.3× the size. GDS Holdings trades at the lower P/E: 8.5× against 11.0×. GDS Holdings grew revenue faster over the last twelve months: 20.0% against 6.51%. GDS Holdings has the higher net margin (30.3% vs 11.1%) and the lower return on invested capital (0.57% vs 14.9%). Across the 21 metrics below, Genpact Limited leads on 15 and GDS Holdings on 6.

Valuation

Metric G GDS Information Technology Services median
P/E 10.96 8.52 16.42
P/S 1.20 2.56 1.06
P/B 2.42 1.01 1.57
Price to free cash flow 11.40 n/m 11.62
EV/EBITDA 7.96 15.12 9.74
EV/Sales 1.33 5.04 1.23
Earnings yield 9.13% 11.74% 4.25%
Free cash flow yield 8.77% (2.42%) 4.50%

Profitability

Metric G GDS Information Technology Services median
Gross margin 36.46% 24.90% 29.97%
Operating margin 14.83% 4.59% 3.30%
Net margin 11.10% 30.34% 2.09%
Free cash flow margin 10.52% (6.19%) 1.51%
Return on equity 22.45% 13.53% 3.67%
Return on assets 10.87% 4.49% 0.47%
Return on invested capital 14.89% 0.57% 0.57%

Growth

Metric G GDS Information Technology Services median
Revenue growth (TTM) 6.51% 20.00% 7.12%
EPS growth (last fiscal year) 9.82% (73.82%) 1.38%
Revenue growth, 5-year CAGR 6.49% 13.84% 7.86%
Net income growth, 5-year CAGR 12.38% 0.00% 0.00%

Health

Metric G GDS Information Technology Services median
Debt to equity 0.45 1.47 0.45
Current ratio 2.00 1.78 1.66
Net debt to EBITDA 0.40 8.69 0.45

Dividend

Metric G GDS Information Technology Services median
Dividend yield 1.97% — 1.97%
Payout ratio 0.22 — 0.30

Size

Metric G GDS Information Technology Services median
Market cap 6.29b 4.94b 1.11b

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