Financial Comparison: Kyndryl (NYSE:KD) vs. Nebius Group (NASDAQ:NBIS)

Nebius Group (NASDAQ:NBIS) and Kyndryl (NYSE:KD) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Insider & Institutional Ownership

21.9% of Nebius Group shares are held by institutional investors. Comparatively, 71.5% of Kyndryl shares are held by institutional investors. 2.0% of Kyndryl shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nebius Group	$529.80 million	89.98	$82.50 million	($0.03)	-6,280.33
Kyndryl	$15.09 billion	0.19	$199.00 million	$0.37	35.62

Kyndryl has higher revenue and earnings than Nebius Group. Nebius Group is trading at a lower price-to-earnings ratio than Kyndryl, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Nebius Group and Kyndryl, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nebius Group	1	6	12	3	2.77
Kyndryl	2	7	0	0	1.78

Nebius Group presently has a consensus target price of $245.69, suggesting a potential upside of 30.40%. Kyndryl has a consensus target price of $16.50, suggesting a potential upside of 25.19%. Given Nebius Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Nebius Group is more favorable than Kyndryl.

Volatility & Risk

Nebius Group has a beta of 4.18, indicating that its share price is 318% more volatile than the S&P 500. Comparatively, Kyndryl has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Profitability

This table compares Nebius Group and Kyndryl’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nebius Group	4.55%	-6.03%	-2.24%
Kyndryl	0.58%	12.24%	1.33%

About Nebius Group

Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company’s services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability. It also offers Avride, an autonomous driving solution which targets ride-hailing, logistics, e-commerce, and food/grocery delivery as application domains, as well as focuses on autonomous vehicles and delivery robots; and TripleTen, an EdTech service that prepares specialists for STEM roles, and equipping them with essential technology skills. The company was formerly known as Yandex N.V. and changed its name to Nebius Group N.V. in August 2024. Nebius Group N.V. was founded in 1989 and is based in Schiphol, the Netherlands.

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.