Reviewing Syntel (SYNT) & The Competition

Syntel (NASDAQ: SYNT) is one of 177 public companies in the “IT Services & Consulting” industry, but how does it compare to its competitors? We will compare Syntel to related businesses based on the strength of its valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Volatility & Risk

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

Valuation & Earnings

This table compares Syntel and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Syntel $966.55 million -$57.38 million 11.59
Syntel Competitors $2.81 billion $290.97 million 356.89

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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Syntel and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Syntel 2 6 2 0 2.00
Syntel Competitors 779 4638 7372 177 2.54

Syntel currently has a consensus price target of $22.43, indicating a potential downside of 5.56%. As a group, “IT Services & Consulting” companies have a potential downside of 11.07%. Given Syntel’s higher possible upside, analysts plainly believe Syntel is more favorable than its competitors.

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 -23.57% -265.86% -4.08%

Insider and Institutional Ownership

36.6% of Syntel shares are owned by institutional investors. Comparatively, 63.3% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 61.1% of Syntel shares are owned by company insiders. Comparatively, 16.6% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Syntel competitors beat Syntel on 7 of the 13 factors compared.

Syntel Company Profile

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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