Financial Contrast: Ability (ABIL) vs. Syntel (SYNT)
Ability (NASDAQ: ABIL) and Syntel (NASDAQ:SYNT) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitabiliy, valuation, risk, dividends and earnings.
This is a breakdown of recent recommendations for Ability and Syntel, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ability presently has a consensus target price of $1.30, indicating a potential upside of 42.86%. Syntel has a consensus target price of $26.71, indicating a potential upside of 36.16%. Given Ability’s higher probable upside, equities research analysts clearly believe Ability is more favorable than Syntel.
Earnings and Valuation
This table compares Ability and Syntel’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ability||$10.84 million||2.16||-$8.63 million||($0.34)||-2.68|
|Syntel||$931.82 million||1.76||$241.10 million||($1.11)||-17.68|
Syntel has higher revenue and earnings than Ability. Syntel is trading at a lower price-to-earnings ratio than Ability, indicating that it is currently the more affordable of the two stocks.
This table compares Ability and Syntel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
6.2% of Ability shares are owned by institutional investors. Comparatively, 33.7% of Syntel shares are owned by institutional investors. 61.1% of Syntel shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Ability has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Syntel has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.
Syntel beats Ability on 9 of the 13 factors compared between the two stocks.
Ability Inc. is a holding company. The Company operates through its subsidiaries, Ability Computer & Software Industries Ltd. and Ability Security Systems Ltd., which provide interception, geolocation and cyber intelligence tools for security and intelligence agencies, military forces, law enforcement agencies and homeland security agencies around the world. The Company is engaged in off-air interception of voice, short message service (SMS), and data communication from both cellular and satellite communication networks, and deciphering solutions for both cellular and satellite communications. The Company’s product categories include Cellular Interception, Cellular Counter Interception, Satellite Interception, Geolocation, Cyber and Crime Prevention. Its Cellular Interception systems include Ultimate Interceptor (ULIN), IBIS, TouchDown, ACIS, AGIS-51 and 3G-Cat. Its Satellite Interception systems include IRIS, ATIS and SLIS.
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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