PFSweb (PFSW) & Syntel (SYNT) Critical Survey
PFSweb (NASDAQ: PFSW) and Syntel (NASDAQ:SYNT) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.
This is a summary of recent ratings and price targets for PFSweb and Syntel, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PFSweb currently has a consensus price target of $11.63, indicating a potential upside of 42.29%. Syntel has a consensus price target of $22.00, indicating a potential downside of 6.82%. Given PFSweb’s stronger consensus rating and higher possible upside, analysts plainly believe PFSweb is more favorable than Syntel.
Insider and Institutional Ownership
58.0% of PFSweb shares are held by institutional investors. Comparatively, 34.8% of Syntel shares are held by institutional investors. 5.2% of PFSweb shares are held by company insiders. Comparatively, 61.1% of Syntel shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
PFSweb has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Syntel has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.
Valuation & Earnings
This table compares PFSweb and Syntel’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|PFSweb||$334.64 million||0.46||-$7.53 million||($0.65)||-12.57|
|Syntel||$966.55 million||2.02||-$57.38 million||$2.05||11.52|
PFSweb has higher revenue, but lower earnings than Syntel. PFSweb is trading at a lower price-to-earnings ratio than Syntel, indicating that it is currently the more affordable of the two stocks.
This table compares PFSweb and Syntel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Syntel beats PFSweb on 7 of the 13 factors compared between the two stocks.
PFSweb Company Profile
PFSWEB, Inc. is a global provider of omni-channel commerce solutions, including a range of technology, infrastructure and professional services. The Company’s service offerings include Website design, creation and integration, digital agency and marketing, e-commerce technologies, order management, customer care, logistics and fulfillment, financial management and professional consulting. It operates through two segments: PFSweb, and Business and Retail Connect. PFSweb is a global provider of various infrastructure, technology and digital agency solutions and operates as a service fee business. In the Business and Retail Connect segment, subsidiaries of the Company purchase inventory from clients and resell the inventory to client customers. Its solutions support direct-to-consumer (DTC), business-to-business (B2B) and retail sales channels. It markets its solutions as PFSweb’s End2End eCommerce solution.
Syntel Company Profile
Syntel, Inc. (Syntel) is a global provider of digital transformation, information technology (IT) and knowledge process outsourcing (KPO) services. The Company operates through five segments: Banking and Financial Services, Healthcare and Life Sciences, Insurance, Manufacturing, and Retail, Logistics and Telecom. Syntel provides a range of services to its customers through its IT services, including Managed Services, Digital One and through its KPO services. Through its Managed Services offering, the Company provides software applications development, maintenance, testing, IT infrastructure, cloud and migration services. Through its SyntBots platform, the Company delivers internally developed automation capabilities that improve the productivity and quality of its Managed Services offerings. The Company’s Digital One service line centralizes the delivery of digital architecture, Web and mobile applications, user experience, Big Data, analytics, social and Internet of Things services.
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