Gartner (NYSE: IT) is one of 186 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare Gartner to related businesses based on the strength of its valuation, dividends, earnings, institutional ownership, risk, profitability and analyst recommendations.

Institutional & Insider Ownership

96.4% of Gartner shares are owned by institutional investors. Comparatively, 61.8% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 4.3% of Gartner shares are owned by company insiders. Comparatively, 16.9% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Gartner -1.25% 57.60% 5.49%
Gartner Competitors -20.44% -271.12% -4.69%

Earnings & Valuation

This table compares Gartner and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Gartner $2.44 billion $193.58 million -352.79
Gartner Competitors $2.81 billion $293.37 million 350.40

Gartner’s competitors have higher revenue and earnings than Gartner. Gartner 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 ratings and target prices for Gartner and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gartner 0 3 7 0 2.70
Gartner Competitors 731 4680 7450 169 2.54

Gartner currently has a consensus target price of $131.89, indicating a potential upside of 9.95%. As a group, “IT Services & Consulting” companies have a potential upside of 3.19%. Given Gartner’s stronger consensus rating and higher possible upside, analysts plainly believe Gartner is more favorable than its competitors.

Risk & Volatility

Gartner has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Gartner’s competitors have a beta of 1.15, suggesting that their average share price is 15% more volatile than the S&P 500.

Summary

Gartner beats its competitors on 7 of the 13 factors compared.

Gartner Company Profile

Gartner, Inc. is an information technology research and advisory company. The Company works with clients to research, analyze and interpret the business of information technology (IT), supply chain and marketing within the context of their individual roles. It operates in three segments: Research, Consulting and Events. Research segment consists of subscription-based research products, access to research inquiry, peer networking services and membership programs. Consulting segment consists of consulting, measurement engagements and strategic advisory services. Events segment consists of various symposia, conferences and exhibitions. It provides insight through reports, briefings, tools, access to its analysts, peer networking services and membership programs that enable its clients to make decisions about their IT, supply chain and digital marketing initiatives. Its consultants provide fact-based consulting services to help clients use and manage IT to optimize business performance.

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