Head to Head Review: Syntel (SYNT) vs. Its Competitors

Syntel (NASDAQ: SYNT) is one of 182 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its competitors? We will compare Syntel to similar companies based on the strength of its analyst recommendations, valuation, profitability, earnings, institutional ownership, risk and dividends.

Analyst Recommendations

This is a summary of recent recommendations for Syntel and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Syntel 2 6 2 0 2.00
Syntel Competitors 775 4722 7482 175 2.54

Syntel currently has a consensus price target of $22.43, indicating a potential downside of 6.00%. As a group, “IT Services & Consulting” companies have a potential downside of 11.01%. Given Syntel’s higher possible upside, equities analysts clearly believe Syntel is more favorable than its competitors.

Insider & Institutional Ownership

36.6% of Syntel shares are held by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 61.1% of Syntel shares are held by insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies 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.

Profitability

This table compares Syntel and its competitors’ 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 -22.14% -259.13% -3.85%

Risk and Volatility

Syntel has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Syntel’s competitors have a beta of 1.10, meaning that their average share price is 10% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Syntel $966.55 million -$57.38 million 11.64
Syntel Competitors $2.79 billion $288.44 million 311.05

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

Summary

Syntel competitors beat Syntel on 7 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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