Analyzing Hill International (HIL) and Syntel (SYNT)

Hill International (NYSE: HIL) and Syntel (NASDAQ:SYNT) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Risk & Volatility

Hill International has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Syntel has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Insider and Institutional Ownership

53.4% of Hill International shares are held by institutional investors. Comparatively, 36.6% of Syntel shares are held by institutional investors. 13.6% of Hill International shares are held by insiders. Comparatively, 61.1% of Syntel shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Hill International and Syntel, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hill International 0 0 0 0 N/A
Syntel 1 5 3 0 2.22

Syntel has a consensus target price of $22.00, indicating a potential downside of 13.01%. Given Syntel’s higher possible upside, analysts plainly believe Syntel is more favorable than Hill International.

Earnings and Valuation

This table compares Hill International and Syntel’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hill International $520.85 million 0.53 -$18.82 million ($0.21) -25.48
Syntel $966.55 million 2.17 -$57.38 million $2.05 12.34

Hill International has higher earnings, but lower revenue than Syntel. Hill International is trading at a lower price-to-earnings ratio than Syntel, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hill International and Syntel’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hill International -4.72% -9.31% -2.26%
Syntel 18.64% -137.94% 36.93%

Summary

Syntel beats Hill International on 9 of the 12 factors compared between the two stocks.

About Hill International

Hill International, Inc. is a professional services firm. The Company provides program management, project management, construction management and other consulting services primarily to the buildings, transportation, environmental, energy and industrial markets worldwide. It operates in Project Management Group segment. The Project Management Group segment provides construction and project management services to construction owners worldwide. Its services include project management oversight, troubled project turnaround, staff augmentation, project labor agreement consulting, commissioning, estimating and cost management, labor compliance services and facilities management services. The Company’s clients include the United States federal government, the United States state and local governments, foreign governments and the private sector.

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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