GDS Holdings (GDS) vs Parsons Corporation (PSN)

GDS Holdings and Parsons Corporation are both Information Technology Services companies. GDS Holdings is the larger, with a market value of $6.5B against $4.5B — 1.4× the size. GDS Holdings trades at the lower P/E: 12.1× against 29.3×. GDS Holdings grew revenue faster over the last twelve months: 20.0% against −5.84%. GDS Holdings has the higher net margin (30.3% vs 2.50%) and the lower return on invested capital (0.57% vs 4.90%). Across the 21 metrics below, Parsons Corporation leads on 11 and GDS Holdings on 10.

Valuation

Metric GDS PSN Information Technology Services median
P/E 12.09 29.29 14.63
P/S 3.63 0.73 1.13
P/B 1.43 1.68 2.10
Price to free cash flow n/m 14.91 10.11
EV/EBITDA 18.34 12.97 8.56
EV/Sales 6.11 0.92 1.20
Earnings yield 8.27% 3.41% 4.56%
Free cash flow yield (1.71%) 6.71% 4.37%

Profitability

Metric GDS PSN Information Technology Services median
Gross margin 24.90% 21.96% 31.05%
Operating margin 4.59% 4.93% 3.30%
Net margin 30.34% 2.50% 2.09%
Free cash flow margin (6.19%) 4.91% 0.00%
Return on equity 13.53% 5.86% 4.12%
Return on assets 4.49% 2.66% 0.61%
Return on invested capital 0.57% 4.90% 0.57%

Growth

Metric GDS PSN Information Technology Services median
Revenue growth (TTM) 20.00% (5.84%) 7.12%
EPS growth (last fiscal year) (73.82%) 3.77% —
Revenue growth, 5-year CAGR 13.84% 10.18% 7.71%
Net income growth, 5-year CAGR 0.00% 19.60% 0.00%

Health

Metric GDS PSN Information Technology Services median
Debt to equity 1.47 0.54 0.45
Current ratio 1.78 1.66 1.66
Net debt to EBITDA 8.69 1.43 0.44

Dividend

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

Size

Metric GDS PSN Information Technology Services median
Market cap 6.50b 4.53b 1.36b

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