Wipro (WIT) versus Its Peers Critical Comparison

Wipro (NYSE: WIT) is one of 185 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its rivals? We will compare Wipro to related companies based on the strength of its institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Wipro and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wipro 3 1 0 0 1.25
Wipro Competitors 730 4647 7436 164 2.54

Wipro currently has a consensus target price of $277.00, suggesting a potential upside of 5,268.22%. As a group, “IT Services & Consulting” companies have a potential upside of 2.55%. Given Wipro’s higher possible upside, research analysts plainly believe Wipro is more favorable than its rivals.

Profitability

This table compares Wipro and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wipro 15.77% 16.14% 10.57%
Wipro Competitors -19.71% -250.34% -3.59%

Insider & Institutional Ownership

2.4% of Wipro shares are held by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 1.0% of Wipro shares are held by company insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Wipro pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Wipro pays out 3.6% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.6% and pay out 37.7% of their earnings in the form of a dividend.

Volatility and Risk

Wipro has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Wipro’s rivals have a beta of 1.13, meaning that their average share price is 13% more volatile than the S&P 500.

Earnings & Valuation

This table compares Wipro and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Wipro $8.49 billion $1.31 billion 18.76
Wipro Competitors $2.79 billion $289.83 million 340.10

Wipro has higher revenue and earnings than its rivals. Wipro is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Wipro rivals beat Wipro on 8 of the 15 factors compared.

About Wipro

Wipro Limited (Wipro) is a global information technology (IT) services provider. It operates through two segments: IT Services and IT Products. The Company’s IT Services business provides a range of IT and IT-enabled services, which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, global infrastructure services, analytics services, business process services, research and development and hardware and software design. The IT Products segment provides a range of third-party IT products, which allows it to offer IT system integration services. Its products include computing, Platforms and Storage, Networking Solutions, Enterprise Information Security, and software products, including databases and operating systems. The Company is a reseller of third-party enterprise products through its direct sales force.

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