Head to Head Analysis: Kyndryl (NYSE:KD) vs. Wipro (NYSE:WIT)

Kyndryl (NYSE:KD) and Wipro (NYSE:WIT) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kyndryl	0.58%	12.24%	1.33%
Wipro	13.93%	15.40%	9.67%

Analyst Ratings

This is a summary of recent ratings and target prices for Kyndryl and Wipro, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyndryl	2	7	0	0	1.78
Wipro	4	0	0	0	1.00

Kyndryl currently has a consensus price target of $16.50, indicating a potential upside of 40.74%. Wipro has a consensus price target of $1.70, indicating a potential downside of 0.29%. Given Kyndryl’s stronger consensus rating and higher possible upside, equities analysts plainly believe Kyndryl is more favorable than Wipro.

Institutional and Insider Ownership

71.5% of Kyndryl shares are held by institutional investors. Comparatively, 2.4% of Wipro shares are held by institutional investors. 2.0% of Kyndryl shares are held by company insiders. Comparatively, 1.0% of Wipro shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Kyndryl and Wipro”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyndryl	$15.09 billion	0.17	$199.00 million	$0.37	31.69
Wipro	$949.68 billion	0.02	$1.41 billion	$0.13	13.12

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

Risk and Volatility

Kyndryl has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500. Comparatively, Wipro has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Summary

Kyndryl beats Wipro on 8 of the 13 factors compared between the two stocks.

About Kyndryl

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

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, retail connectivity and services, consumer goods, healthcare, technology products and platforms, banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company was incorporated in 1945 and is based in Bengaluru, India.