Syntel (NASDAQ: SYNT) and Sysorex Global (NASDAQ:INPX) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Syntel and Sysorex Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Syntel 1 5 2 0 2.13
Sysorex Global 0 1 0 0 2.00

Syntel currently has a consensus price target of $22.50, indicating a potential upside of 20.39%. Sysorex Global has a consensus price target of $0.25, indicating a potential upside of 3.73%. Given Syntel’s stronger consensus rating and higher possible upside, analysts plainly believe Syntel is more favorable than Sysorex Global.

Valuation and Earnings

This table compares Syntel and Sysorex Global’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Syntel $931.82 million 1.68 $248.82 million ($1.11) -16.84
Sysorex Global $54.33 million 0.05 -$12.45 million N/A N/A

Syntel has higher revenue and earnings than Sysorex Global.

Volatility and Risk

Syntel has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Sysorex Global has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Insider and Institutional Ownership

34.7% of Syntel shares are owned by institutional investors. Comparatively, 4.8% of Sysorex Global shares are owned by institutional investors. 61.1% of Syntel shares are owned by insiders. Comparatively, 24.0% of Sysorex Global shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Syntel and Sysorex Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Syntel -10.11% -110.72% 23.23%
Sysorex Global -57.29% -3,228.93% -47.63%

Summary

Syntel beats Sysorex Global on 11 of the 12 factors compared between the two stocks.

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.

Sysorex Global Company Profile

Inpixon, formerly Sysorex Global, provides data analytics and location-based solutions and services to commercial and government customers across the world. The Company operates through four segments: Mobile, IoT & Big Data Products, which includes its AirPatrol product line and on-premise big data appliance product; Storage and Computing, which includes third-party hardware, software and related maintenance/warranty products and services that the Company resells; SaaS Revenues, which provides software-as-a-services or Internet-based hosted services, and Professional Services, which offers general information technology (IT) services. Its products and services include LightMiner Analytics Platform, Data Science and Advanced Analytics Consulting Services, AirPatrol for Security, AirPatrol for Retail, Shoom Product Line, Enterprise Infrastructure Solutions and Services, and IT Services.

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