Gartner (NYSE: IT) is one of 188 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare Gartner to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, valuation, risk, dividends and earnings.

Risk & Volatility

Gartner has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Gartner’s peers have a beta of 1.11, indicating that their average share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Gartner and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gartner 0 3 7 0 2.70
Gartner Competitors 725 4645 7409 167 2.54

Gartner currently has a consensus target price of $131.89, suggesting a potential upside of 13.09%. As a group, “IT Services & Consulting” companies have a potential upside of 4.89%. Given Gartner’s stronger consensus rating and higher possible upside, research analysts plainly believe Gartner is more favorable than its peers.

Valuation and Earnings

This table compares Gartner and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Gartner $2.44 billion $193.58 million -343.00
Gartner Competitors $2.79 billion $290.25 million 304.06

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

Insider and Institutional Ownership

93.7% of Gartner shares are owned by institutional investors. Comparatively, 62.6% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 4.3% of Gartner shares are owned by company insiders. Comparatively, 15.9% 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 stock will outperform the market over the long term.

Profitability

This table compares Gartner and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gartner -1.25% 57.60% 5.49%
Gartner Competitors -20.11% -269.27% -4.64%

Summary

Gartner beats its peers on 7 of the 13 factors compared.

About Gartner

Gartner, Inc. is an information technology research and advisory company. The Company works with clients to research, analyze and interpret the business of information technology (IT), supply chain and marketing within the context of their individual roles. It operates in three segments: Research, Consulting and Events. Research segment consists of subscription-based research products, access to research inquiry, peer networking services and membership programs. Consulting segment consists of consulting, measurement engagements and strategic advisory services. Events segment consists of various symposia, conferences and exhibitions. It provides insight through reports, briefings, tools, access to its analysts, peer networking services and membership programs that enable its clients to make decisions about their IT, supply chain and digital marketing initiatives. Its consultants provide fact-based consulting services to help clients use and manage IT to optimize business performance.

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