Wipro (NYSE: WIT) is one of 186 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare Wipro to related businesses based on the strength of its risk, institutional ownership, profitability, dividends, analyst recommendations, valuation and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Wipro 15.77% 16.14% 10.57%
Wipro Competitors -73.34% -271.26% -4.55%

Risk & Volatility

Wipro has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Wipro’s competitors have a beta of 1.15, suggesting that their average stock price is 15% more volatile than the S&P 500.

Earnings and Valuation

This table compares Wipro and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Wipro $8.49 billion $1.31 billion 19.13
Wipro Competitors $2.81 billion $293.37 million 311.56

Wipro has higher revenue and earnings than its competitors. Wipro 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Wipro and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wipro 3 1 0 0 1.25
Wipro Competitors 725 4646 7406 167 2.54

Wipro currently has a consensus target price of $277.00, indicating a potential upside of 5,166.16%. As a group, “IT Services & Consulting” companies have a potential upside of 0.55%. Given Wipro’s higher possible upside, analysts plainly believe Wipro is more favorable than its competitors.

Insider & Institutional Ownership

2.3% of Wipro shares are owned by institutional investors. Comparatively, 61.5% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 1.0% of Wipro shares are owned by insiders. Comparatively, 16.3% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Wipro pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Wipro pays out 3.6% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.5% and pay out 36.5% of their earnings in the form of a dividend.

Summary

Wipro competitors beat Wipro on 8 of the 15 factors compared.

About Wipro

Wipro Limited (Wipro) is a global information technology (IT) services provider. It operates through two segments: IT Services and IT Products. The Company’s IT Services business provides a range of IT and IT-enabled services, which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, global infrastructure services, analytics services, business process services, research and development and hardware and software design. The IT Products segment provides a range of third-party IT products, which allows it to offer IT system integration services. Its products include computing, Platforms and Storage, Networking Solutions, Enterprise Information Security, and software products, including databases and operating systems. The Company is a reseller of third-party enterprise products through its direct sales force.

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