Syntel (NASDAQ: SYNT) is one of 182 public companies in the “IT Services & Consulting” industry, but how does it contrast to its rivals? We will compare Syntel to related companies based on the strength of its earnings, institutional ownership, risk, profitability, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a summary of current ratings and price targets for Syntel and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Syntel 2 6 2 0 2.00
Syntel Competitors 775 4722 7482 175 2.54

Syntel currently has a consensus price target of $22.43, indicating a potential downside of 6.00%. As a group, “IT Services & Consulting” companies have a potential downside of 11.01%. Given Syntel’s higher probable upside, research analysts plainly believe Syntel is more favorable than its rivals.

Risk and Volatility

Syntel has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Syntel’s rivals have a beta of 1.10, suggesting that their average stock price is 10% more volatile than the S&P 500.

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 -22.14% -259.13% -3.85%

Insider and Institutional Ownership

36.6% of Syntel shares are owned by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 61.1% of Syntel shares are owned by company insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Syntel and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Syntel $966.55 million -$57.38 million 11.64
Syntel Competitors $2.79 billion $288.44 million 311.05

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.

Summary

Syntel rivals beat Syntel on 7 of the 13 factors compared.

Syntel Company Profile

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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