Reviewing Kyndryl (KD) & The Competition

Kyndryl (NYSE:KD) is one of 271 public companies in the “IT Services” industry, but how does it contrast to its competitors? We will compare Kyndryl to related businesses based on the strength of its dividends, analyst recommendations, valuation, institutional ownership, earnings, risk and profitability.

Analyst Recommendations

This is a summary of current ratings and price targets for Kyndryl and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyndryl	2	7	0	0	1.78
Kyndryl Competitors	1992	5653	9473	342	2.47

Kyndryl presently has a consensus price target of $17.67, suggesting a potential upside of 8.09%. As a group, “IT Services” companies have a potential upside of 30.35%. Given Kyndryl’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Kyndryl has less favorable growth aspects than its competitors.

Risk & Volatility

Kyndryl has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Kyndryl’s competitors have a beta of 2.16, indicating that their average stock price is 116% more volatile than the S&P 500.

Valuation & Earnings

This table compares Kyndryl and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kyndryl	$15.09 billion	$199.00 million	46.70
Kyndryl Competitors	$3.34 billion	$227.67 million	-23.49

Kyndryl has higher revenue, but lower earnings than its competitors. Kyndryl is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kyndryl	0.52%	13.21%	1.37%
Kyndryl Competitors	-189.78%	-32.46%	-8.30%

Institutional and Insider Ownership

71.5% of Kyndryl shares are held by institutional investors. Comparatively, 36.7% of shares of all “IT Services” companies are held by institutional investors. 2.0% of Kyndryl shares are held by insiders. Comparatively, 20.4% of shares of all “IT Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Kyndryl competitors beat Kyndryl on 7 of the 13 factors compared.

Kyndryl Company Profile

Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, communications, retail and travel, and automotive industries. The company was incorporated in 2020 and is headquartered in New York, New York.