Syntel (NASDAQ: SYNT) is one of 185 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its peers? We will compare Syntel to related businesses based on the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.

Institutional and Insider Ownership

36.6% of Syntel shares are owned by institutional investors. Comparatively, 62.4% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 61.1% of Syntel shares are owned by insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Syntel has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Syntel’s peers have a beta of 1.15, suggesting that their average share price is 15% more volatile than the S&P 500.

Profitability

This table compares Syntel and its peers’ 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 -22.74% -276.16% -5.01%

Earnings and Valuation

This table compares Syntel and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Syntel $966.55 million -$57.38 million 11.46
Syntel Competitors $2.84 billion $293.55 million 348.59

Syntel’s peers have higher revenue and earnings than Syntel. Syntel 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Syntel and its peers, 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 832 4749 7542 182 2.53

Syntel currently has a consensus target price of $22.43, suggesting a potential downside of 4.56%. As a group, “IT Services & Consulting” companies have a potential downside of 10.94%. Given Syntel’s higher possible upside, research analysts plainly believe Syntel is more favorable than its peers.

Summary

Syntel peers beat Syntel on 8 of the 13 factors compared.

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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