Contrasting Kyndryl (KD) and Its Peers

Kyndryl (NYSE:KD) is one of 271 public companies in the “IT Services” industry, but how does it weigh in compared to its rivals? We will compare Kyndryl to similar companies based on the strength of its profitability, valuation, risk, earnings, dividends, institutional ownership and analyst recommendations.

Earnings and Valuation

This table compares Kyndryl and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kyndryl	$15.09 billion	$199.00 million	46.70
Kyndryl Competitors	$3.34 billion	$227.67 million	-23.49

Kyndryl has higher revenue, but lower earnings than its rivals. Kyndryl is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Kyndryl has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Kyndryl’s rivals have a beta of 2.16, suggesting that their average stock price is 116% more volatile than the S&P 500.

Insider & Institutional Ownership

71.5% of Kyndryl shares are held by institutional investors. Comparatively, 36.7% of shares of all “IT Services” companies are held by institutional investors. 2.0% of Kyndryl shares are held by insiders. Comparatively, 20.4% of shares of all “IT Services” companies are held 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.

Profitability

This table compares Kyndryl and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kyndryl	0.52%	13.21%	1.37%
Kyndryl Competitors	-189.78%	-32.46%	-8.30%

Analyst Ratings

This is a breakdown of recent recommendations for Kyndryl and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyndryl	2	7	0	0	1.78
Kyndryl Competitors	1992	5653	9473	342	2.47

Kyndryl presently has a consensus target price of $17.67, suggesting a potential upside of 8.09%. As a group, “IT Services” companies have a potential upside of 30.35%. Given Kyndryl’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Kyndryl has less favorable growth aspects than its rivals.

Summary

Kyndryl rivals beat Kyndryl on 7 of the 13 factors compared.

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.