Analyzing Kyndryl (NYSE:KD) and AMTD Digital (NYSE:HKD)

Kyndryl (NYSE:KD) and AMTD Digital (NYSE:HKD) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Kyndryl and AMTD Digital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyndryl	0	3	5	0	2.63
AMTD Digital	0	0	0	0	0.00

Kyndryl currently has a consensus target price of $37.60, indicating a potential upside of 59.80%. Given Kyndryl’s stronger consensus rating and higher probable upside, research analysts plainly believe Kyndryl is more favorable than AMTD Digital.

Institutional and Insider Ownership

71.5% of Kyndryl shares are owned by institutional investors. Comparatively, 5.8% of AMTD Digital shares are owned by institutional investors. 1.9% of Kyndryl shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Kyndryl and AMTD Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kyndryl	2.71%	25.76%	3.12%
AMTD Digital	N/A	N/A	N/A

Valuation & Earnings

This table compares Kyndryl and AMTD Digital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyndryl	$15.06 billion	0.36	$251.00 million	$1.69	13.92
AMTD Digital	$20.44 million	17.66	N/A	N/A	N/A

Kyndryl has higher revenue and earnings than AMTD Digital.

Risk and Volatility

Kyndryl has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500. Comparatively, AMTD Digital has a beta of 2.2, meaning that its share price is 120% more volatile than the S&P 500.

Summary

Kyndryl beats AMTD Digital on 9 of the 11 factors compared between the two stocks.

About Kyndryl

Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, communications, retail and travel, and automotive industries. The company was incorporated in 2020 and is headquartered in New York, New York.

About AMTD Digital

AMTD Digital Inc., through its subsidiaries, designs and develops a digital platform to provide financial, media, content and marketing, and investment solutions in Asia. The company operates through Digital Solutions ServicesFinancial Services, Digital Solutions ServicesNon Financial Services, Digital Media, Content, and Marketing Services, and Digital Investments segments. It offers deposit, personal loan, credit card, fund transfer, cross border remittance, insurance, and other payment services. In addition, the company operates SpiderNet ecosystem, a platform to enhance their investor communication, investor relations, and corporate communication to enhance their valuation. Further, it offers movies, podcasts, webinars, and videos through online media platforms. Additionally, the company invests in hotel related activities. AMTD Digital Inc. was incorporated in 2019 and is based in Paris, France. AMTD Digital Inc. operates as a subsidiary of AMTD IDEA Group.