Wipro Limited (WIT) vs. Its Competitors Head to Head Review

Wipro Limited (NYSE: WIT) is one of 187 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare Wipro Limited to related companies based on the strength of its valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Volatility & Risk

Wipro Limited has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Wipro Limited’s competitors have a beta of 1.11, meaning that their average share price is 11% more volatile than the S&P 500.

Institutional & Insider Ownership

2.3% of Wipro Limited shares are held by institutional investors. Comparatively, 62.6% of shares of all “IT Services & Consulting” companies are held by institutional investors. 1.0% of Wipro Limited shares are held by insiders. Comparatively, 15.9% of shares of all “IT Services & Consulting” 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.

Earnings and Valuation

This table compares Wipro Limited and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Wipro Limited $8.49 billion $1.31 billion 19.38
Wipro Limited Competitors $2.79 billion $290.25 million 295.23

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Wipro Limited and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wipro Limited 3 1 0 0 1.25
Wipro Limited Competitors 722 4631 7376 162 2.54

Wipro Limited presently has a consensus price target of $277.00, suggesting a potential upside of 5,097.00%. As a group, “IT Services & Consulting” companies have a potential upside of 3.12%. Given Wipro Limited’s higher possible upside, equities analysts plainly believe Wipro Limited is more favorable than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
Wipro Limited 15.77% 16.14% 10.57%
Wipro Limited Competitors -20.08% -270.74% -4.57%

Dividends

Wipro Limited pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Wipro Limited 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 37.2% of their earnings in the form of a dividend.

Summary

Wipro Limited competitors beat Wipro Limited on 8 of the 15 factors compared.

Wipro Limited Company Profile

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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