Virtusa Corporation (NASDAQ: VRTU) is one of 204 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare Virtusa Corporation to related companies based on the strength of its earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

91.5% of Virtusa Corporation shares are held by institutional investors. Comparatively, 60.8% of shares of all “IT Services & Consulting” companies are held by institutional investors. 6.0% of Virtusa Corporation shares are held by insiders. Comparatively, 16.9% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Virtusa Corporation and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Virtusa Corporation $858.73 million $11.85 million 54.29
Virtusa Corporation Competitors $2.74 billion $282.94 million 65.73

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

Volatility & Risk

Virtusa Corporation has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Virtusa Corporation’s competitors have a beta of 1.12, indicating that their average share price is 12% more volatile than the S&P 500.

Profitability

This table compares Virtusa Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Virtusa Corporation 2.47% 4.26% 2.66%
Virtusa Corporation Competitors -20.16% -52.39% -3.67%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Virtusa Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Virtusa Corporation 0 1 6 0 2.86
Virtusa Corporation Competitors 699 4471 7228 156 2.54

Virtusa Corporation currently has a consensus target price of $37.29, indicating a potential downside of 0.47%. As a group, “IT Services & Consulting” companies have a potential downside of 1.46%. Given Virtusa Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Virtusa Corporation is more favorable than its competitors.

Summary

Virtusa Corporation beats its competitors on 8 of the 13 factors compared.

Virtusa Corporation Company Profile

Virtusa Corporation (Virtusa) is an information technology services company. The Company’s services include information technology (IT) and business consulting, digital enablement services, user experience (UX) design, development of IT applications, maintenance and support services, systems integration, infrastructure and managed services. Its services enable its clients to accelerate business outcomes by consolidating, rationalizing and modernizing the clients’ core customer-facing processes into one or more core systems. It delivers solutions through a global delivery model, applying advanced methods, such as Agile, a technique designed to accelerate application development. The Company uses its consulting methodology, Accelerated Solution Design (ASD). It supports the Chief Information Officers (CIOs) of its client organizations in solving their critical issues, including managing total cost of ownership, accelerating time-to-market and increasing productivity.

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