Genpact Limited (G) vs GDS Holdings (GDS)

Genpact Limited and GDS Holdings are both Information Technology Services companies. GDS Holdings is the larger, with a market value of $6.5B against $5.6B — 1.2× the size. Genpact Limited trades at the lower P/E: 9.7× against 12.1×. 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 17 and GDS Holdings on 4.

Valuation

Metric G GDS Information Technology Services median
P/E 9.72 12.09 14.63
P/S 1.06 3.63 1.13
P/B 2.14 1.43 2.10
Price to free cash flow 10.11 n/m 10.11
EV/EBITDA 7.14 18.34 8.56
EV/Sales 1.19 6.11 1.20
Earnings yield 10.29% 8.27% 4.56%
Free cash flow yield 9.89% (1.71%) 4.37%

Profitability

Metric G GDS Information Technology Services median
Gross margin 36.46% 24.90% 31.05%
Operating margin 14.83% 4.59% 3.30%
Net margin 11.10% 30.34% 2.09%
Free cash flow margin 10.52% (6.19%) 0.00%
Return on equity 22.45% 13.53% 4.12%
Return on assets 10.87% 4.49% 0.61%
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%) —
Revenue growth, 5-year CAGR 6.49% 13.84% 7.71%
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 0.44

Dividend

Metric G GDS Information Technology Services median
Dividend yield 0.92% — 1.21%
Payout ratio 0.24 0.00 0.00

Size

Metric G GDS Information Technology Services median
Market cap 5.61b 6.50b 1.36b

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