Wipro Limited (NYSE: WIT) is one of 195 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare Wipro Limited to related companies based on the strength of its institutional ownership, valuation, analyst recommendations, earnings, profitability, dividends and risk.

Profitability

This table compares Wipro Limited and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wipro Limited 15.77% 16.14% 10.57%
Wipro Limited Competitors -19.91% -51.20% -3.67%

Risk & Volatility

Wipro Limited has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Wipro Limited’s peers have a beta of 1.28, suggesting that their average share price is 28% more volatile than the S&P 500.

Earnings and Valuation

This table compares Wipro Limited and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Wipro Limited $8.56 billion $1.72 billion 19.49
Wipro Limited Competitors $2.14 billion $373.70 million 36.48

Wipro Limited has higher revenue and earnings than its peers. Wipro Limited is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

2.5% of Wipro Limited shares are owned by institutional investors. Comparatively, 62.4% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 1.0% of Wipro Limited shares are owned by insiders. Comparatively, 16.4% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Wipro Limited pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Wipro Limited pays out 3.6% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.6% and pay out 38.2% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Wipro Limited and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wipro Limited 3 1 0 0 1.25
Wipro Limited Competitors 680 4380 7114 154 2.55

Wipro Limited presently has a consensus price target of $277.00, indicating a potential upside of 5,067.91%. As a group, “IT Services & Consulting” companies have a potential downside of 3.47%. Given Wipro Limited’s higher probable upside, equities research analysts plainly believe Wipro Limited is more favorable than its peers.

Summary

Wipro Limited peers beat Wipro Limited on 8 of the 15 factors compared.

About Wipro Limited

Wipro Limited (Wipro) is a global information technology (IT) services provider. It operates through two segments: IT Services and IT Products. The Company’s IT Services business provides a range of IT and IT-enabled services, which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, global infrastructure services, analytics services, business process services, research and development and hardware and software design. The IT Products segment provides a range of third-party IT products, which allows it to offer IT system integration services. Its products include computing, Platforms and Storage, Networking Solutions, Enterprise Information Security, and software products, including databases and operating systems. The Company is a reseller of third-party enterprise products through its direct sales force.

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