Luxoft Holding (LXFT) & Its Competitors Critical Survey

Luxoft Holding (NYSE: LXFT) is one of 97 publicly-traded companies in the “Enterprise Software” industry, but how does it contrast to its peers? We will compare Luxoft Holding to similar businesses based on the strength of its valuation, analyst recommendations, institutional ownership, profitability, earnings, risk and dividends.

Institutional and Insider Ownership

80.0% of Luxoft Holding shares are held by institutional investors. Comparatively, 60.4% of shares of all “Enterprise Software” companies are held by institutional investors. 22.5% of shares of all “Enterprise Software” companies are held by 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.

Valuation and Earnings

This table compares Luxoft Holding and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Luxoft Holding $816.75 million $89.07 million 29.19
Luxoft Holding Competitors $1.27 billion $348.15 million 37.10

Luxoft Holding’s peers have higher revenue and earnings than Luxoft Holding. Luxoft Holding is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Luxoft Holding and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Luxoft Holding 6.72% 18.90% 13.83%
Luxoft Holding Competitors -25.22% -211.13% -8.08%

Volatility & Risk

Luxoft Holding has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Luxoft Holding’s peers have a beta of 1.13, indicating that their average stock price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Luxoft Holding and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Luxoft Holding 1 4 4 0 2.33
Luxoft Holding Competitors 342 2030 3874 107 2.59

Luxoft Holding currently has a consensus price target of $65.00, suggesting a potential upside of 38.30%. As a group, “Enterprise Software” companies have a potential upside of 3.75%. Given Luxoft Holding’s higher probable upside, equities analysts plainly believe Luxoft Holding is more favorable than its peers.

Summary

Luxoft Holding peers beat Luxoft Holding on 7 of the 13 factors compared.

Luxoft Holding Company Profile

Luxoft Holding, Inc., is a provider of software development services and information technology (IT) solutions to a global client base consisting primarily of large multinational corporations. The Company’s software development services consist of custom software development and support, product engineering and testing, and technology consulting. The Company’s solutions are based on its proprietary products and platforms that directly impact its clients’ business outcomes and efficiently deliver continuous innovation. The Company develops its solutions and delivers its services from 34 cities with delivery centers worldwide. Its products and platforms include Horizon, SuperCloud, Twister, iStockTrack, TEORA, Populus, AllView, CVNAR and Retail Engagement Suite (RES) in Internet of Things (IoT) space.

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