Kyndryl (NYSE:KD) versus Ebix (NASDAQ:EBIX) Critical Analysis

Kyndryl (NYSE:KD – Get Rating) and Ebix (NASDAQ:EBIX – Get Rating) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Insider and Institutional Ownership

63.0% of Kyndryl shares are owned by institutional investors. Comparatively, 67.2% of Ebix shares are owned by institutional investors. 0.2% of Kyndryl shares are owned by insiders. Comparatively, 15.9% of Ebix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Kyndryl and Ebix’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyndryl	$18.32 billion	0.18	-$731.00 million	($3.84)	-3.74
Ebix	$1.05 billion	0.45	$64.64 million	$1.71	8.99

Ebix has lower revenue, but higher earnings than Kyndryl. Kyndryl is trading at a lower price-to-earnings ratio than Ebix, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kyndryl and Ebix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kyndryl	-5.03%	-25.39%	-4.18%
Ebix	6.16%	11.34%	4.99%

Volatility & Risk

Kyndryl has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, Ebix has a beta of 2.37, indicating that its stock price is 137% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Kyndryl and Ebix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyndryl	0	2	1	0	2.33
Ebix	0	0	1	0	3.00

Kyndryl presently has a consensus price target of $16.67, indicating a potential upside of 15.90%. Ebix has a consensus price target of $50.00, indicating a potential upside of 225.31%. Given Ebix’s stronger consensus rating and higher possible upside, analysts plainly believe Ebix is more favorable than Kyndryl.

Summary

Ebix beats Kyndryl on 12 of the 13 factors compared between the two stocks.

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.

About Ebix

(Get Rating)

Ebix, Inc. engages in the development and deployment of insurance and reinsurance exchanges on an on-demand basis using software-as-a-service (“”SaaS””) enterprise solutions in the areas of customer relationship management (“”CRM””), front-end and back-end systems, and outsourced administrative and risk compliance. The company was founded in 1976 and is headquartered in Johns Creek, GA.