Analyzing Gartner (IT) & Its Peers
Gartner (NYSE: IT) is one of 182 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its peers? We will compare Gartner to similar companies based on the strength of its institutional ownership, risk, valuation, earnings, dividends, analyst recommendations and profitability.
Institutional and Insider Ownership
96.4% of Gartner shares are owned by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 4.3% of Gartner shares are owned by company insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
Gartner has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Gartner’s peers have a beta of 1.13, indicating that their average share price is 13% more volatile than the S&P 500.
This table compares Gartner and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Gartner and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Gartner||$2.44 billion||$193.58 million||-352.97|
|Gartner Competitors||$2.79 billion||$290.02 million||297.35|
Gartner’s peers have higher revenue and earnings than Gartner. Gartner is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent ratings for Gartner and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gartner presently has a consensus price target of $131.89, indicating a potential upside of 9.90%. As a group, “IT Services & Consulting” companies have a potential upside of 1.82%. Given Gartner’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Gartner is more favorable than its peers.
Gartner beats its peers on 7 of the 13 factors compared.
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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