Head-To-Head Analysis: Wipro (NYSE:WIT) versus Kyndryl (NYSE:KD)

Wipro (NYSE:WIT) and Kyndryl (NYSE:KD) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Wipro and Kyndryl, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wipro	3	1	0	0	1.25
Kyndryl	2	7	0	0	1.78

Wipro currently has a consensus target price of $1.70, suggesting a potential downside of 1.45%. Kyndryl has a consensus target price of $16.50, suggesting a potential upside of 42.77%. Given Kyndryl’s stronger consensus rating and higher possible upside, analysts plainly believe Kyndryl is more favorable than Wipro.

Insider and Institutional Ownership

2.4% of Wipro shares are owned by institutional investors. Comparatively, 71.5% of Kyndryl shares are owned by institutional investors. 1.0% of Wipro shares are owned by insiders. Comparatively, 2.0% of Kyndryl shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Wipro has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Kyndryl has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.

Earnings & Valuation

This table compares Wipro and Kyndryl”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wipro	$9.87 billion	1.73	$1.41 billion	$0.13	13.27
Kyndryl	$14.97 billion	0.17	$199.00 million	$0.37	31.24

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wipro	13.93%	15.40%	9.67%
Kyndryl	0.58%	12.24%	1.33%

Summary

Kyndryl beats Wipro on 8 of the 13 factors compared between the two stocks.

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, retail connectivity and services, consumer goods, healthcare, technology products and platforms, banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company was incorporated in 1945 and is based in Bengaluru, India.

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.