Wipro Limited (NYSE: WIT) is one of 196 public companies in the “IT Services & Consulting” industry, but how does it compare to its rivals? We will compare Wipro Limited to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, institutional ownership, profitability and earnings.

Risk and Volatility

Wipro Limited has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Wipro Limited’s rivals have a beta of 1.27, indicating that their average stock price is 27% more volatile than the S&P 500.

Insider and Institutional Ownership

2.5% of Wipro Limited shares are owned by institutional investors. Comparatively, 60.9% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 1.0% of Wipro Limited shares are owned by company insiders. Comparatively, 16.8% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Wipro Limited $8.56 billion $1.72 billion 19.75
Wipro Limited Competitors $2.12 billion $371.54 million 16.60

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

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 38.4% of their earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Wipro Limited 15.77% 16.47% 10.70%
Wipro Limited Competitors -20.43% -51.75% -3.64%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Wipro Limited and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wipro Limited 4 1 0 0 1.20
Wipro Limited Competitors 683 4459 7466 169 2.56

Wipro Limited presently has a consensus price target of $277.00, suggesting a potential upside of 5,001.29%. As a group, “IT Services & Consulting” companies have a potential downside of 3.09%. Given Wipro Limited’s higher possible upside, research analysts clearly believe Wipro Limited is more favorable than its rivals.

Summary

Wipro Limited beats its rivals 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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