Sodexo (OTCMKTS: SDXAY) and Gartner (NYSE:IT) are both large-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Earnings and Valuation
This table compares Sodexo and Gartner’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sodexo||$24.32 billion||0.62||$794.57 million||$6.49||3.10|
|Gartner||$3.31 billion||3.24||$3.27 million||$3.31||35.65|
Sodexo has higher revenue and earnings than Gartner. Sodexo is trading at a lower price-to-earnings ratio than Gartner, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Sodexo and Gartner, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gartner has a consensus target price of $138.00, indicating a potential upside of 16.96%. Given Gartner’s stronger consensus rating and higher probable upside, analysts plainly believe Gartner is more favorable than Sodexo.
Risk & Volatility
Sodexo has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Gartner has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
Institutional & Insider Ownership
0.1% of Sodexo shares are held by institutional investors. Comparatively, 96.7% of Gartner shares are held by institutional investors. 1.0% of Sodexo shares are held by company insiders. Comparatively, 4.3% of Gartner shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Sodexo pays an annual dividend of $0.55 per share and has a dividend yield of 2.7%. Gartner does not pay a dividend. Sodexo pays out 8.5% of its earnings in the form of a dividend.
This table compares Sodexo and Gartner’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Gartner beats Sodexo on 11 of the 15 factors compared between the two stocks.
Sodexo S.A. develops, manages, and delivers on-site services, benefits and rewards services, and personal and home services worldwide. The company offers various on-site services, including construction, reception, medical equipment sterilization, cleaning, food, event management, and prisoner rehabilitation services to corporates, governments, healthcare and seniors, universities, schools, energy and resources, and sports and leisure customers. It also provides benefits and rewards services, which comprise employee benefits, incentive and recognition programs, expense management, public benefits, and gift cards and boxes. In addition, the company offers concierge services; and in-home care services comprising assistance with eating, bathing, walking, and housecleaning, as well as helps in maintaining social contact and relationships. Further, it provides grocery shopping, going to work, and a doctor's appointment services; and operates child day-care centers. The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008. Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France.
Gartner, Inc. operates as a research and advisory company. It operates through four segments: Research, Consulting, Events, and Talent Assessment & Other. The Research segment offers objective insights and advice on the priorities of various leaders in a range of functional areas of the enterprise through research and other reports, briefings, proprietary tools, access to our analysts, peer networking services, and membership programs that enable clients to make better decisions; and practice and talent management research insights in various business functions, such as human resources, sales, legal, and finance. This segment delivers its research, primarily through a subscription-based digital media service. The Consulting segment offers customized solutions to client needs through on-site and day-to-day support, as well as proprietary tools for measuring and improving IT performance. This segment provides solutions to CIOs, IT executives, and other professionals who are responsible for IT applications, enterprise architecture, go-to-market strategies, infrastructure and operations, program and portfolio management, and sourcing and vendor relationships; consulting services to professionals; and actionable solutions for IT cost optimization, technology modernization, and IT sourcing optimization initiatives. The Events segment offers business professionals in an organization the opportunity to learn, share, and network various events. The Talent Assessment & Other segment helps organizations to assess, engage, manage, and improve talent through knowledge and skills assessments, training programs, workshops, and survey and questionnaire services. The company has operations in the United States, Canada, Europe, the Middle East, Africa, and internationally. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.
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