Syntel (NASDAQ: SYNT) is one of 178 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its rivals? We will compare Syntel to similar companies based on the strength of its dividends, valuation, earnings, profitability, institutional ownership, analyst recommendations and risk.

Insider and Institutional Ownership

36.6% of Syntel shares are held by institutional investors. Comparatively, 61.4% of shares of all “IT Services & Consulting” companies are held by institutional investors. 61.1% of Syntel shares are held by company insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Syntel and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Syntel 18.64% -137.94% 36.93%
Syntel Competitors -19.72% -262.83% -3.37%

Analyst Recommendations

This is a summary of recent recommendations for Syntel and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Syntel 1 6 2 0 2.11
Syntel Competitors 739 4649 7326 164 2.54

Syntel currently has a consensus price target of $22.67, indicating a potential downside of 8.34%. As a group, “IT Services & Consulting” companies have a potential downside of 10.37%. Given Syntel’s higher possible upside, equities research analysts plainly believe Syntel is more favorable than its rivals.

Valuation & Earnings

This table compares Syntel and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Syntel $966.55 million -$57.38 million 12.06
Syntel Competitors $2.79 billion $288.44 million 337.97

Syntel’s rivals have higher revenue and earnings than Syntel. Syntel is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Syntel has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Syntel’s rivals have a beta of 1.13, indicating that their average stock price is 13% more volatile than the S&P 500.

Summary

Syntel rivals beat Syntel on 8 of the 13 factors compared.

About Syntel

Syntel, Inc. (Syntel) is a global provider of digital transformation, information technology (IT) and knowledge process outsourcing (KPO) services. The Company operates through five segments: Banking and Financial Services, Healthcare and Life Sciences, Insurance, Manufacturing, and Retail, Logistics and Telecom. Syntel provides a range of services to its customers through its IT services, including Managed Services, Digital One and through its KPO services. Through its Managed Services offering, the Company provides software applications development, maintenance, testing, IT infrastructure, cloud and migration services. Through its SyntBots platform, the Company delivers internally developed automation capabilities that improve the productivity and quality of its Managed Services offerings. The Company’s Digital One service line centralizes the delivery of digital architecture, Web and mobile applications, user experience, Big Data, analytics, social and Internet of Things services.

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