Wipro Limited (NYSE: WIT) is one of 198 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its peers? We will compare Wipro Limited to related companies based on the strength of its analyst recommendations, valuation, profitability, earnings, institutional ownership, dividends and risk.

Dividends

Wipro Limited pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Wipro Limited pays out 3.6% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.7% and pay out 37.7% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Wipro Limited and its peers revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Wipro Limited $8.49 billion $1.31 billion 18.44
Wipro Limited Competitors $2.74 billion $282.94 million 236.42

Wipro Limited has higher revenue and earnings than its peers. Wipro Limited 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.

Institutional and Insider Ownership

2.5% of Wipro Limited shares are owned by institutional investors. Comparatively, 60.6% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 1.0% of Wipro Limited shares are owned by company insiders. Comparatively, 17.1% 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 is poised for long-term growth.

Profitability

This table compares Wipro Limited and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wipro Limited 15.77% 16.14% 10.57%
Wipro Limited Competitors -14.79% -52.96% -3.10%

Analyst Ratings

This is a summary of current ratings for Wipro Limited and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wipro Limited 3 1 0 0 1.25
Wipro Limited Competitors 696 4463 7226 160 2.55

Wipro Limited presently has a consensus target price of $277.00, suggesting a potential upside of 5,363.51%. As a group, “IT Services & Consulting” companies have a potential upside of 0.58%. Given Wipro Limited’s higher probable upside, research analysts clearly believe Wipro Limited is more favorable than its peers.

Volatility & Risk

Wipro Limited has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Wipro Limited’s peers have a beta of 1.09, suggesting that their average stock price is 9% more volatile than the S&P 500.

Summary

Wipro Limited peers beat Wipro Limited on 8 of the 15 factors compared.

Wipro Limited Company Profile

Wipro Limited (Wipro) is a global information technology (IT) services provider. It operates through two segments: IT Services and IT Products. The Company’s IT Services business provides a range of IT and IT-enabled services, which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, global infrastructure services, analytics services, business process services, research and development and hardware and software design. The IT Products segment provides a range of third-party IT products, which allows it to offer IT system integration services. Its products include computing, Platforms and Storage, Networking Solutions, Enterprise Information Security, and software products, including databases and operating systems. The Company is a reseller of third-party enterprise products through its direct sales force.

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