Critical Analysis: Kyndryl (KD) and Its Rivals

Kyndryl (NYSE:KDGet Rating) is one of 78 public companies in the “Computer integrated systems design” industry, but how does it contrast to its rivals? We will compare Kyndryl to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, valuation, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Kyndryl and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kyndryl 0 1 0 0 2.00
Kyndryl Competitors 253 1674 2873 58 2.56

Kyndryl currently has a consensus target price of $12.00, suggesting a potential upside of 8.89%. As a group, “Computer integrated systems design” companies have a potential upside of 40.67%. Given Kyndryl’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Kyndryl has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

61.9% of Kyndryl shares are owned by institutional investors. Comparatively, 57.2% of shares of all “Computer integrated systems design” companies are owned by institutional investors. 0.2% of Kyndryl shares are owned by company insiders. Comparatively, 12.2% of shares of all “Computer integrated systems design” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Kyndryl -8.59% -51.01% -9.14%
Kyndryl Competitors -246.46% -216.41% -11.29%

Earnings & Valuation

This table compares Kyndryl and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Kyndryl $18.66 billion -$2.32 billion -1.65
Kyndryl Competitors $1.73 billion -$31.62 million 11.50

Kyndryl has higher revenue, but lower earnings than its rivals. Kyndryl 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

Kyndryl rivals beat Kyndryl on 7 of the 12 factors compared.

About Kyndryl

(Get Rating)

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

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