Gartner (IT) vs. Its Peers Financial Analysis

Gartner (NYSE: IT) is one of 180 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare Gartner to related companies based on the strength of its earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Gartner $2.44 billion $193.58 million -355.03
Gartner Competitors $2.79 billion $290.02 million 345.00

Gartner’s competitors have higher revenue and earnings than Gartner. Gartner 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.

Profitability

This table compares Gartner and its competitors’ 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 -19.03% -257.32% -3.03%

Institutional & Insider Ownership

96.4% of Gartner shares are owned by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 4.3% of Gartner shares are owned by company insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Gartner has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Gartner’s competitors have a beta of 1.12, suggesting that their average stock price is 12% more volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gartner 0 3 7 0 2.70
Gartner Competitors 723 4573 7336 164 2.54

Gartner presently has a consensus price target of $131.89, suggesting a potential upside of 9.26%. As a group, “IT Services & Consulting” companies have a potential upside of 2.16%. Given Gartner’s stronger consensus rating and higher probable upside, research analysts plainly believe Gartner is more favorable than its competitors.

Summary

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

Gartner Company Profile

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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