Reviewing Luxoft Holding (LXFT) and Its Rivals

Luxoft Holding (NYSE: LXFT) is one of 107 publicly-traded companies in the “Enterprise Software” industry, but how does it contrast to its peers? We will compare Luxoft Holding to related businesses based on the strength of its dividends, institutional ownership, valuation, profitability, risk, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and price targets for Luxoft Holding and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Luxoft Holding 1 3 4 0 2.38
Luxoft Holding Competitors 363 2180 4110 118 2.59

Luxoft Holding presently has a consensus price target of $65.00, indicating a potential upside of 40.09%. As a group, “Enterprise Software” companies have a potential downside of 0.22%. Given Luxoft Holding’s higher possible upside, analysts clearly believe Luxoft Holding is more favorable than its peers.

Risk & Volatility

Luxoft Holding has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Luxoft Holding’s peers have a beta of 1.11, suggesting that their average stock price is 11% more volatile than the S&P 500.

Earnings and Valuation

This table compares Luxoft Holding and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Luxoft Holding $785.56 million $62.63 million 28.82
Luxoft Holding Competitors $1.82 billion $300.70 million 40.78

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 -25.37% -205.72% -7.90%

Insider & Institutional Ownership

78.7% of Luxoft Holding shares are held by institutional investors. Comparatively, 59.1% of shares of all “Enterprise Software” companies are held by institutional investors. 23.5% of shares of all “Enterprise Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

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

About Luxoft Holding

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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