Wipro (NYSE:WIT) vs. Zentek (NASDAQ:ZTEK) Financial Analysis

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Wipro and Zentek, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wipro	2	2	0	0	1.50
Zentek	1	0	0	0	1.00

Wipro presently has a consensus target price of $1.70, suggesting a potential downside of 14.36%. Given Wipro’s stronger consensus rating and higher probable upside, equities analysts plainly believe Wipro is more favorable than Zentek.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wipro	13.93%	15.40%	9.67%
Zentek	-5,848.76%	-81.95%	-57.78%

Volatility & Risk

Wipro has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Zentek has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Insider and Institutional Ownership

2.4% of Wipro shares are held by institutional investors. Comparatively, 0.8% of Zentek shares are held by institutional investors. 1.0% of Wipro shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Wipro and Zentek”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wipro	$9.87 billion	1.99	$1.41 billion	$0.13	15.27
Zentek	$120,000.00	712.98	-$7.07 million	($0.07)	-9.65

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

Summary

Wipro beats Zentek on 12 of the 13 factors compared between the two stocks.

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.

About Zentek

Zentek Ltd., together with its subsidiaries, engages in the research and development of graphene and related nanomaterials in Canada. The company develops graphene-based antimicrobial coating under the ZenGUARD brand, surgical masks, HVAC filters, personal protective equipment, rapid detection point of care diagnostics tests, and pharmaceutical products based on graphene-based compounds. It is also developing graphene oxide synthesis and graphene synthesis. In addition, the company owns 100% interest in the Albany graphite project located in Northern Ontario, Canada. The company was formerly known as ZEN Graphene Solutions Ltd. and changed its name to Zentek Ltd. in October 2021. Zentek Ltd. was incorporated in 2008 and is headquartered in Guelph, Canada.